🔗 Share this article

Andrej Babiš, the self-styled billionaire who won last month's Czech election, has declined to offload his vast corporate assets, while asserting he will resolve a conflict of interest that could block him from assuming the position of head of government.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October vote but lacked a majority in parliament, declared in a social media post that he will not sell his Agrofert group, which is active in agriculture, food processing, and chemicals.

“I have consistently stated I will not sell Agrofert. I have consistently said I will resolve the ethical issue in accordance with national and European laws,” the billionaire commented. “This is not like selling a pastry in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts arising from his business activities before being appointed premier.

The national charter “explicitly requires the head of state to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, the presidential administration explained.

The president “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement said, noting that Pavel was prepared to appoint Babiš as premier “immediately” once the matter was resolved.

Business Operations and Legal Issues

Babiš's numerous firms, primarily under the Agrofert group, function in the nation and other regional countries, benefiting from millions of euros in national and EU farming and other grants, as well as government deals.

Under national legislation, cabinet members are barred from obtaining public aid or contracts. The ethics organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or stay out of government.

Past Term and Current Plans

Babiš affirmed he would “abide by the laws” if selected as prime minister, but did not want to detail how in advance because the issue was “an highly personal and personal matter for me, and the media will invariably question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over potential conflicts of interest. He temporarily moved his assets into trust funds, while keeping certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but refused to disclose details.

Governing Agreement and International Implications

The billionaire populist has signed a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if approved, is expected to strengthen the populist movement in central and eastern Europe and could strain western support for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for foreign policy, also demanded that the government agenda add a statement on the government’s position on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

The president has earlier said he would not approve any cabinet candidates who might doubt the Czech Republic’s international alliances, a condition that the ultra-conservative party has indicated it will satisfy by nominating non-partisan experts.