🔗 Share this article

Andrej Babiš, the self-styled billionaire who won last month's parliamentary vote, has refused to offload his extensive corporate assets, while insisting he will resolve a ethical dilemma that could prevent him from assuming the position of head of government.

Position on Corporate Empire

Babiš, whose ANO party came first in the autumn election but did not secure a majority in parliament, declared in a social media post that he will not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have consistently said I will address the conflict of interest in accordance with Czech and European laws,” the billionaire commented. “This is not like selling a pastry in a bakery.”

President's Demand

The Czech president, Petr Pavel, announced that the elderly political figure must clarify openly how he will remove ethical conflicts arising from his business activities before being appointed prime minister.

The national charter “clearly mandates the president to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, Pavel's office noted.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was ready to designate Babiš as premier “without delay” once the matter was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred firms, mostly under the Agrofert group, operate in the nation and other regional states, benefiting from substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under national legislation, government ministers are barred from obtaining state support or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline government deals, or stay out of government.

Past Term and Present Plans

Babiš affirmed he would “follow the laws” if appointed as premier, but did not want to explain how in advance because the issue was “an extremely sensitive and personal matter for me, and journalists will invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over potential ethical issues. He temporarily moved his holdings into trust funds, while keeping certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but declined to reveal details.

Governing Deal and Foreign Policy Consequences

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

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

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme include a declaration on the government’s position on the conflict in Ukraine, with a pledge to meeting alliance duties.

The head of state has previously said he would not approve any ministerial nominees who might doubt the nation's international alliances, a condition that the far-right SPD has indicated it will satisfy by proposing independent technocrats.