🔗 Share this article

Andrej Babiš, the self-proclaimed billionaire who won the recent parliamentary vote, has declined to offload his vast corporate assets, while asserting he will address a conflict of interest that might block him from assuming the position of head of government.

Stance on Corporate Empire

Babiš, whose political movement came first in the October election but did not secure a parliamentary majority, declared in a online statement that he would not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly said I will address the conflict of interest in compliance with Czech and European laws,” the billionaire commented. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will eliminate ethical conflicts stemming from his business activities before assuming the role of prime minister.

The Czech constitution “explicitly requires the head of state to take into account the possible emergence of a conflict of interest and the ways to address it” when selecting government ministers, the presidential administration explained.

The head of state “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was ready to designate Babiš as premier “immediately” once the issue was resolved.

Business Operations and Legal Issues

Babiš's numerous firms, primarily under the Agrofert group, operate in the nation and other regional countries, benefiting from millions of euros in domestic and European agricultural and other grants, as well as public contracts.

Under national legislation, cabinet members are barred from receiving public aid or agreements. The ethics watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or not enter public office.

Past Term and Present Intentions

Babiš said he would “abide by the laws” if selected as prime minister, but declined to explain how in advance because the issue was “an extremely sensitive and private affair for me, and the media will always question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over possible conflicts of interest. He temporarily moved his assets into trust funds, while retaining certain control over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but refused to disclose details.

Coalition Deal and Foreign Policy Implications

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is expected to strengthen the populist bloc in central and eastern Europe and might challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for international relations, also demanded that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, with a commitment to fulfilling alliance duties.

The president has earlier said he would not approve any cabinet candidates who might question the nation's EU and Nato commitments, a requirement that the ultra-conservative party has said it will meet by proposing non-partisan experts.