Czech Populist PM-Elect Refuses to Divest Business Empire Amid Ethical Dispute

Andrej Babiš, the self-proclaimed billionaire who won last month's Czech election, has refused to offload his extensive business interests, while insisting he will resolve a conflict of interest that could prevent him from assuming the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party came first in the autumn election but did not secure a majority in parliament, declared in a online statement that he will not sell his Agrofert group, which is active in agriculture, food production, and chemicals.

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

Head of State's Requirement

The head of state, Petr Pavel, announced that the elderly political figure must clarify openly how he will eliminate conflicts of interest stemming from his corporate dealings before being appointed premier.

The national charter “explicitly requires the president to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, Pavel's office noted.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the announcement added, stating that Pavel was prepared to appoint Babiš as prime minister “without delay” once the matter was resolved.

Corporate Activities and Legal Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the Czech Republic and other regional countries, benefiting from millions of euros in national and EU farming and other grants, as well as government deals.

Under national legislation, government ministers cannot receiving public aid or agreements. The ethics organization Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, refuse public contracts, or stay out of government.

Past Term and Present Plans

Babiš affirmed he would “abide by the regulations” if selected as prime minister, but declined to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and the media will invariably criticise me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible ethical issues. He placed his assets into trust funds, while retaining certain control over them.

A court and the European Commission both ruled that this was insufficient. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but declined to reveal specifics.

Governing Agreement and Foreign Policy Implications

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The incoming administration, if approved, is expected to strengthen the populist bloc in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also requested that the government agenda include a declaration on the government’s position on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.

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