🔗 Share this article

Andrej Babiš, the self-styled tycoon that won the recent parliamentary vote, has refused to offload his extensive business interests, while insisting he will resolve a conflict of interest that could block him from assuming the role of head of government.

Position on Corporate Empire

Babiš, whose ANO party came first in the October vote but lacked a parliamentary majority, stated in a social media post that he would not divest his Agrofert conglomerate, which is active in agriculture, food production, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently stated I will resolve the ethical issue in compliance with national and EU regulations,” the billionaire remarked. “This is not like selling a roll in a bakery.”

President's Requirement

The head of state, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove conflicts of interest stemming from his business activities before assuming the role of prime minister.

The national charter “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, noting that Pavel was ready to appoint Babiš as premier “immediately” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert group, operate in the nation and other regional states, receiving substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under national legislation, cabinet members are barred from obtaining state support or agreements. The anti-corruption organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, refuse government deals, or not enter public office.

Past Term and Current Plans

Babiš affirmed he would “abide by the regulations” if selected as premier, but did not want to explain how in beforehand because the matter was “an extremely sensitive and personal matter for me, and journalists will invariably question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over possible ethical issues. He placed his assets into fiduciary arrangements, while retaining some influence over them.

A court and the EU executive both ruled that this was insufficient. Babiš confirmed recently that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to reveal details.

Coalition Deal and International Implications

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if approved, is expected to strengthen the populist bloc in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

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

The head of state has previously said he would not endorse 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 independent technocrats.