🔗 Share this article

Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's parliamentary vote, has refused to sell his vast corporate assets, while asserting he will resolve a ethical dilemma that might prevent him from assuming the role of prime minister.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a majority in parliament, declared in a online statement that he will not sell his Agrofert conglomerate, which is active in farming, food processing, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently said I will resolve the conflict of interest in accordance with national and EU regulations,” Babiš remarked. “This is not like selling a roll in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts stemming from his business activities before being appointed prime minister.

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

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

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the nation and other regional countries, receiving millions of euros in domestic and European farming and other subsidies, as well as public contracts.

Under national legislation, cabinet members are barred from obtaining state support or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse public contracts, or stay out of government.

Past Tenure and Present Plans

Babiš said he would “follow the laws” if selected as prime minister, but declined to explain how in beforehand because the matter was “an highly personal and personal matter for me, and journalists will always criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated recently that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but declined to reveal specifics.

Coalition Agreement and International Consequences

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The incoming administration, if approved, is expected to bolster the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – even though 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 requested that the coalition’s programme add a statement on the official stance on the conflict in Ukraine, including a commitment to meeting Nato obligations.

The head of state has previously said he would not approve any cabinet candidates who might question the nation's EU and Nato commitments, a condition that the far-right SPD has said it will meet by nominating independent technocrats.