🔗 Share this article

Andrej Babiš, the self-styled billionaire that won last month's parliamentary vote, has refused to offload his extensive corporate assets, while asserting he will resolve a conflict of interest that might block him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the October vote but lacked a parliamentary majority, stated in a social media post that he would not divest his Agrofert group, which operates in agriculture, food production, and chemicals.

“I have consistently stated I will not sell Agrofert. I have repeatedly said I will address the conflict of interest in compliance with Czech and EU regulations,” Babiš remarked. “This is not like selling a roll in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will remove conflicts of interest stemming from his corporate dealings before assuming the role of prime minister.

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

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the announcement said, noting that Pavel was ready to designate Babiš as prime minister “immediately” once the issue was resolved.

Business Operations and Legal Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, operate in the Czech Republic and other central European countries, receiving millions of euros in national and EU farming and other grants, as well as government deals.

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

Previous Term and Current Plans

Babiš affirmed he would “abide by the regulations” if appointed as premier, but declined to detail how in beforehand because the matter was “an highly personal and private affair for me, and journalists will always criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible conflicts of interest. He placed his assets into trust funds, while keeping certain control over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated last month that he was again the sole owner of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but refused to disclose details.

Coalition Deal and International Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly 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 incoming administration, if approved, is likely to bolster 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 Czech support.

Pavel, who as head of state shares responsibility for international relations, also requested that the government agenda include a declaration on the official stance on the conflict in Ukraine, including a commitment to fulfilling Nato obligations.

The president has earlier said he would not approve any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by nominating non-partisan experts.