🔗 Share this article

Andrej Babiš, the self-styled billionaire who secured victory in last month's parliamentary vote, has declined to sell his vast corporate assets, while insisting he will resolve a ethical dilemma that could prevent him from assuming the position of head of government.

Position on Corporate Empire

Babiš, whose ANO party came first in the autumn election but lacked a majority in parliament, stated in a online statement that he would not divest his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently stated I will address the ethical issue in compliance with Czech and European laws,” the billionaire remarked. “This is not like selling a pastry in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the elderly populist must clarify openly how he will remove ethical conflicts 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 conflict of interest and the possibilities for its resolution” when appointing cabinet members, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was ready to appoint Babiš as premier “immediately” once the issue was settled.

Business Operations and Legal Issues

Babiš's numerous companies, mostly under the Agrofert umbrella, function in the Czech Republic and other central European states, receiving substantial funds in national and EU agricultural and other subsidies, as well as public contracts.

Under national legislation, cabinet members cannot receiving public aid or contracts. The ethics watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, refuse government deals, or not enter public office.

Past Tenure and Present Plans

Babiš affirmed he would “follow the laws” if appointed as prime minister, but did not want to explain how in beforehand because the matter was “an extremely sensitive and private affair for me, and the media will always criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over potential conflicts of interest. He placed his assets into fiduciary arrangements, while retaining certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but declined to disclose specifics.

Coalition Agreement and International Consequences

The billionaire populist has concluded a coalition agreement 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 Green Deal.

The new government, if approved, is likely to bolster the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state has a role for foreign policy, also requested that the coalition’s programme add a statement on the government’s position on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

The head of state has previously stated he would not approve any cabinet candidates who might question the nation's international alliances, a requirement that the ultra-conservative party has indicated it will satisfy by proposing non-partisan experts.