🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon that won last month's parliamentary vote, has declined to offload his vast corporate assets, while insisting he will resolve a ethical dilemma that could prevent him from taking the role of prime minister.

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the autumn election but lacked a parliamentary majority, stated in a online statement that he will not sell his Agrofert group, which operates in farming, food production, and chemicals.

“I have consistently said I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with Czech and European laws,” Babiš remarked. “This is not like selling a roll in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, stated that the elderly political figure must clarify openly how he will remove conflicts of interest stemming from his corporate dealings before being appointed premier.

The Czech constitution “explicitly requires the president to consider the possible emergence of a conflict of interest and the ways to address it” when appointing cabinet members, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, noting that Pavel was prepared to designate Babiš as premier “without delay” once the matter was settled.

Business Operations and Legal Issues

Babiš's several hundred firms, primarily under the Agrofert group, function in the Czech Republic and other central European countries, benefiting from substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, government ministers are barred from obtaining public aid or agreements. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or stay out of government.

Past Tenure and Present Plans

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

During his first term as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible conflicts of interest. He placed his assets into trust funds, while keeping some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but declined to disclose details.

Governing Deal and International Consequences

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a public vote on leaving 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 backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

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

The head of state has earlier stated he would not approve any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the far-right SPD has said it will satisfy by nominating independent technocrats.