🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon that won last month's parliamentary vote, has refused to offload his extensive business interests, while insisting he will address a conflict of interest that could prevent him from taking the role of prime minister.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but lacked a majority in parliament, stated in a online statement that he would not sell his Agrofert group, which operates in agriculture, food production, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have consistently said I will resolve the conflict of interest in accordance with Czech and European laws,” the billionaire remarked. “This is different from selling a roll in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove ethical conflicts arising from his business activities before assuming the role of premier.

The national charter “explicitly requires the head of state to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was prepared to appoint Babiš as premier “immediately” once the matter was resolved.

Business Operations and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert group, function in the Czech Republic and other central European states, receiving millions of euros in national and EU agricultural and other subsidies, as well as public contracts.

Under Czech law, government ministers cannot receiving public aid or contracts. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or stay out of government.

Past Term and Current Plans

Babiš said he would “follow the regulations” 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 journalists will always criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over possible conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while keeping 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 maintained he was “implementing measures” to avoid a conflict of interest, but declined to reveal details.

Governing Agreement and International Implications

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to strengthen the populist bloc in the region and could challenge western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme include a statement on the official stance on the conflict in Ukraine, with a commitment to meeting Nato obligations.

The head of state has earlier said he would not approve any cabinet candidates who might doubt the nation's international alliances, a condition that the far-right SPD has indicated it will satisfy by proposing non-partisan experts.