🔗 Share this article

Andrej Babiš, the self-proclaimed billionaire who secured victory in the recent parliamentary vote, has declined to sell his vast corporate assets, while insisting he will resolve a conflict of interest that could block him from assuming the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party came first in the autumn election but did not secure a parliamentary majority, declared in a online statement that he will not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

“I have consistently said I will not sell Agrofert. I have consistently said I will address the conflict of interest in accordance with national and European laws,” the billionaire remarked. “This is not like selling a pastry in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, stated that the elderly populist must clarify openly how he will eliminate conflicts of interest arising from his business activities before being appointed premier.

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting government ministers, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was ready to designate Babiš as prime minister “immediately” once the issue was settled.

Business Operations and Legal Issues

Babiš's numerous firms, primarily under the Agrofert umbrella, function in the Czech Republic and other regional states, benefiting from substantial funds in national and EU farming and other subsidies, as well as government deals.

Under Czech law, government ministers cannot obtaining state support or agreements. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or not enter public office.

Previous Tenure and Present 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 highly personal and personal matter for me, and journalists will always question me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over possible ethical issues. He placed his holdings into trust funds, while keeping some influence over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but refused to reveal details.

Governing Deal and International Consequences

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is expected to bolster the populist bloc in the region and could strain western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also demanded that the coalition’s programme add a declaration on the official stance on the conflict in Ukraine, with a pledge to meeting alliance duties.

The head of state has earlier stated he would not endorse any cabinet candidates who might question the Czech Republic’s international alliances, a condition that the ultra-conservative party has said it will meet by proposing independent technocrats.