🔗 Share this article

Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's parliamentary vote, has refused to offload his vast business interests, while asserting he will resolve a ethical dilemma that might prevent him from taking the role of head of government.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but lacked a majority in parliament, stated in a social media post that he would not divest his Agrofert group, which is active in agriculture, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently said I will resolve the ethical issue in compliance with national and European laws,” Babiš commented. “This is different from selling a roll in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove conflicts of interest arising from his corporate dealings before assuming the role of premier.

The national charter “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting government ministers, the presidential administration explained.

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

Business Operations and Regulatory Concerns

Babiš's numerous companies, mostly under the Agrofert umbrella, function in the nation and other central European countries, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot obtaining state support or agreements. The ethics watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, decline government deals, or not enter public office.

Previous Tenure and Present Plans

Babiš said he would “follow the regulations” if appointed as prime minister, but did not want to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and the media will invariably question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over possible ethical issues. He temporarily moved his assets into trust funds, while keeping some influence over them.

A court and the EU executive both ruled that this did not suffice. Babiš stated last month that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to disclose specifics.

Coalition Deal and International Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if confirmed, is expected to bolster the populist bloc in central and eastern Europe and could strain western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for international relations, also demanded that the government agenda include a declaration 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 approve any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has said it will meet by nominating independent technocrats.