🔗 Share this article

Andrej Babiš, the self-styled tycoon that secured victory in the recent Czech election, has declined to sell his extensive business interests, while insisting he will resolve 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 autumn vote but lacked a majority in parliament, stated in a social media post that he would not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with Czech and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove ethical conflicts stemming from his business activities before being appointed premier.

The national charter “clearly mandates the head of state to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement said, noting that Pavel was prepared to designate Babiš as prime minister “immediately” once the matter was resolved.

Corporate Activities and Legal Issues

Babiš's several hundred companies, mostly under the Agrofert group, operate in the Czech Republic and other central European countries, benefiting from substantial funds in domestic and European farming and other subsidies, as well as public contracts.

Under Czech law, government ministers cannot receiving state support or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, refuse government deals, or stay out of public office.

Previous Term and Present Plans

Babiš affirmed he would “abide by the regulations” if appointed as prime minister, but declined to detail how in advance because the issue was “an highly personal and personal matter for me, and the media will always criticise me regardless”.

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 placed his holdings into trust funds, while retaining certain control over them.

A court and the European Commission both ruled that this was insufficient. Babiš confirmed last month that he was once more the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but refused to reveal details.

Governing Deal and International Implications

The wealthy politician has signed a coalition agreement 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 primarily campaigned against the EU’s environmental policy.

The new government, if approved, is expected to strengthen the populist bloc in the region and might challenge western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme include a declaration on the official stance on the conflict in Ukraine, with a commitment to fulfilling Nato obligations.

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