🔗 Share this article

Andrej Babiš, the self-styled tycoon that secured victory in the recent Czech election, has declined to sell his extensive business interests, while insisting he will address a conflict of interest that might block him from taking the role of head of government.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the October vote but lacked a parliamentary majority, declared in a social media post that he will not sell his Agrofert group, which is active in farming, food production, and chemical industries.

“I have consistently stated I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in accordance with Czech and EU regulations,” Babiš commented. “This is different from selling a roll in a bakeshop.”

President's Demand

The head of state, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will eliminate conflicts of interest arising from his business activities before being appointed premier.

The national charter “clearly mandates the head of state to take into account the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, Pavel's office explained.

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

Corporate Activities and Regulatory Issues

Babiš's numerous firms, primarily under the Agrofert group, function in the Czech Republic and other central European states, benefiting from millions of euros in domestic and European farming and other grants, as well as government deals.

Under national legislation, government ministers cannot receiving public aid or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline government deals, or stay out of public office.

Previous Tenure and Current Plans

Babiš said he would “follow the laws” if selected as premier, but did not want to detail how in beforehand because the matter 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 faced several legal battles and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into trust funds, while retaining some influence over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš stated recently that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but declined to reveal details.

Coalition Agreement and International Consequences

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if confirmed, is likely to strengthen the populist bloc in central and eastern Europe and could strain western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for international relations, also requested that the government agenda add a declaration on the government’s position on the conflict in Ukraine, including a commitment to fulfilling Nato obligations.

The president has earlier said he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the far-right SPD has indicated it will satisfy by nominating non-partisan experts.