🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon who secured victory in last month's Czech election, has declined to offload his extensive corporate assets, while insisting he will address a ethical dilemma that could block him from assuming the role of head of government.

Stance on Corporate Empire

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

“I have consistently stated I will not sell Agrofert. I have consistently stated I will resolve the ethical issue in compliance with national and EU regulations,” the billionaire remarked. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will eliminate ethical conflicts arising from his corporate dealings before assuming the role of prime minister.

The Czech constitution “clearly mandates the president to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement said, noting that Pavel was ready to appoint Babiš as prime minister “immediately” once the matter was resolved.

Business Operations and Legal Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the Czech Republic and other central European states, receiving millions of euros in domestic and European agricultural and other grants, as well as government deals.

Under Czech law, cabinet members are barred from receiving public aid or contracts. The ethics watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or stay out of government.

Past Term and Present Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but did not want to explain how in beforehand because the matter was “an highly personal and private affair for me, and the media will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over possible ethical issues. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence 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 avoid a ethical problem, but declined to reveal specifics.

Coalition Agreement and International Consequences

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if confirmed, is expected to strengthen the populist bloc in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for international relations, also requested that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, including a commitment to meeting alliance duties.

The president has previously stated he would not approve any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has said it will meet by nominating non-partisan experts.