🔗 Share this article

Andrej Babiš, the self-styled billionaire who won the recent parliamentary vote, has refused to offload his vast corporate assets, while asserting he will resolve a conflict of interest that might prevent him from taking the role of head of government.

Stance on Business Holdings

Babiš, whose ANO party came first in the autumn election but lacked a parliamentary majority, stated in a online statement that he would not sell his Agrofert conglomerate, which is active in agriculture, food processing, and chemicals.

“I have consistently stated I will not sell Agrofert. I have repeatedly said I will resolve the ethical issue in accordance with national and European laws,” Babiš commented. “This is not like selling a roll in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will remove ethical conflicts arising from his business activities before being appointed premier.

The national charter “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the ways to address it” when appointing cabinet members, the presidential administration explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was settled.

Business Operations and Regulatory Issues

Babiš's numerous firms, primarily under the Agrofert umbrella, function in the Czech Republic and other regional states, receiving millions of euros in national and EU agricultural and other grants, as well as public contracts.

Under national legislation, government ministers are barred from receiving public aid or agreements. The ethics watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, refuse public contracts, or stay out of government.

Previous Tenure and Present Plans

Babiš affirmed he would “follow the laws” if appointed as premier, but did not want to detail how in beforehand because the matter was “an highly personal and personal matter for me, and journalists will invariably criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential conflicts of interest. He placed his holdings into fiduciary arrangements, while keeping some influence over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš confirmed last month that he was once more the sole owner of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but declined to reveal specifics.

Coalition Deal and Foreign Policy Implications

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

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

Pavel, who as president shares responsibility for foreign policy, also demanded that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, including a pledge to fulfilling Nato obligations.

The president has earlier said he would not endorse any ministerial nominees who might doubt the nation's international alliances, a condition that the ultra-conservative party has indicated it will satisfy by nominating independent technocrats.