Czech Populist PM-Elect Declines to Divest Business Empire During Ethical Dispute

Andrej Babiš, the self-proclaimed billionaire that won last month's parliamentary vote, has refused to offload his vast corporate assets, while asserting he will resolve a conflict of interest that could block him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party came first in the October 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 chemical industries.

“I have repeatedly said I will not sell Agrofert. I have repeatedly said I will address the ethical issue in accordance with Czech and European laws,” Babiš remarked. “This is different from selling a roll in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the elderly populist must clarify openly how he will remove ethical conflicts stemming from his corporate dealings before being appointed premier.

The Czech constitution “clearly mandates the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, the presidential administration noted.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert umbrella, function in the Czech Republic and other regional countries, benefiting from millions of euros in domestic and European agricultural and other subsidies, as well as public contracts.

Under Czech law, government ministers cannot receiving state support or contracts. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline public contracts, or stay out of public office.

Past Tenure and Current Intentions

Babiš affirmed he would “abide by the regulations” if appointed as prime minister, but declined to detail how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will always question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over possible conflicts of interest. He temporarily moved his assets into trust funds, while keeping some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but declined to reveal specifics.

Coalition Agreement and International Implications

The billionaire populist has signed a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a public vote on leaving 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 backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the government agenda include a statement on the government’s position on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

The president has previously stated he would not approve any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.