🔗 Share this article

Andrej Babiš, the self-styled tycoon who won last month's parliamentary vote, has refused to sell his vast business interests, while asserting he will address a conflict of interest that could block him from assuming the role of prime minister.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn vote but did not secure a majority in parliament, stated in a social media post that he would not sell his Agrofert conglomerate, which operates in farming, food processing, and chemicals.

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

Head of State's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove conflicts of interest stemming from his corporate dealings before assuming the role of premier.

The national charter “clearly mandates the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, the presidential administration explained.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement added, noting that Pavel was ready to designate Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, primarily under the Agrofert group, function in the Czech Republic and other regional states, benefiting from millions of euros in domestic and European agricultural and other grants, as well as public contracts.

Under Czech law, government ministers are barred from obtaining state support or contracts. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or stay out of public office.

Past Term and Present Intentions

Babiš affirmed he would “follow the regulations” if selected as prime minister, but did not want to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and the media will invariably question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš confirmed recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but refused to disclose details.

Governing Deal and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if approved, is expected to strengthen the populist movement in central and eastern Europe and could strain western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for international relations, also demanded that the coalition’s programme include a statement on the official stance on Russia’s war in Ukraine, including a commitment to fulfilling Nato obligations.

The president has earlier stated he would not endorse any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has said it will meet by nominating non-partisan experts.