🔗 Share this article

Andrej Babiš, the self-proclaimed billionaire who won last month's Czech election, has refused to offload his vast business interests, while asserting he will resolve a conflict of interest that could block him from taking the role of head of government.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but lacked a majority in parliament, declared in a online statement that he would not sell his Agrofert conglomerate, which operates in farming, food processing, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have consistently stated I will resolve the ethical issue in accordance with national and EU regulations,” the billionaire remarked. “This is not like selling a roll in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will eliminate conflicts of interest stemming from his business activities before being appointed premier.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, Pavel's office explained.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, stating that Pavel was prepared to designate Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Legal Concerns

Babiš's numerous firms, mostly under the Agrofert group, operate in the Czech Republic and other regional states, receiving substantial funds in domestic and European agricultural and other subsidies, as well as public contracts.

Under national legislation, cabinet members cannot receiving state support or contracts. The anti-corruption organization Transparency International has stated that to avoid a ethical breach, Babiš must either divest, decline public contracts, or not enter public office.

Previous Term and Current Plans

Babiš said he would “abide by the regulations” if appointed as premier, 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 prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but declined to reveal specifics.

Governing Deal and Foreign Policy Implications

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to bolster the populist bloc in the region and could challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also demanded that the coalition’s programme add a statement on the government’s position on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

The president has earlier said he would not approve any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has indicated it will satisfy by proposing non-partisan experts.