🔗 Share this article

Andrej Babiš, the self-styled billionaire that secured victory in last month's parliamentary vote, has refused to sell his vast corporate assets, while insisting he will resolve a conflict of interest that might prevent him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the October vote but did not secure a majority in parliament, declared in a online statement that he will not divest his Agrofert group, which operates in farming, food production, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in compliance with national and European laws,” the billionaire commented. “This is not like selling a pastry in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, stated that the elderly political figure must clarify openly how he will eliminate conflicts of interest arising from his business activities before being appointed premier.

The Czech constitution “clearly mandates the head of state to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, the presidential administration noted.

The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, stating that Pavel was ready to appoint Babiš as premier “immediately” once the issue was settled.

Corporate Activities and Legal Issues

Babiš's several hundred companies, primarily under the Agrofert umbrella, function in the Czech Republic and other central European states, benefiting from millions of euros in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, cabinet members are barred from obtaining state support or agreements. The ethics organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, decline public contracts, or not enter government.

Previous Term and Current Intentions

Babiš affirmed he would “follow the regulations” if selected as prime minister, but did not want to explain how in beforehand because the issue was “an extremely sensitive and personal matter for me, and the media will invariably question me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over potential conflicts of interest. He placed his assets into trust funds, while keeping some influence over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš stated recently that he was again the sole owner of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but refused to disclose details.

Governing Deal and Foreign Policy Consequences

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if confirmed, is expected to strengthen the populist movement in the region and might challenge western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for international relations, also requested that the coalition’s programme include a statement on the government’s position on Russia’s war in Ukraine, including a pledge to fulfilling alliance duties.

The president has earlier stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has said it will satisfy by proposing non-partisan experts.