🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon that secured victory in last month's parliamentary vote, has refused to offload his extensive business interests, while insisting he will address a conflict of interest that could block him from taking the position of prime minister.

Stance on Corporate Empire

Babiš, whose political movement came first in the autumn vote but did not secure a majority in parliament, declared in a social media post that he would not divest his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly said I will address the conflict of interest in accordance with national and European laws,” the billionaire commented. “This is not like selling a roll in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove ethical conflicts arising from his business activities before assuming the role of prime minister.

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, Pavel's office explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to designate Babiš as prime minister “immediately” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous companies, primarily under the Agrofert group, operate in the nation and other regional states, benefiting from substantial funds in national and EU farming and other grants, as well as government deals.

Under Czech law, government ministers are barred from receiving state support or contracts. The anti-corruption organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or stay out of public office.

Previous Tenure and Current Intentions

Babiš said he would “abide by the regulations” if appointed as prime minister, but did not want to explain how in beforehand because the issue was “an highly personal and private affair for me, and journalists will invariably criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible conflicts of interest. He placed his assets into fiduciary arrangements, while retaining some influence over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to disclose specifics.

Coalition Agreement and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if approved, is expected to strengthen the populist bloc in central and eastern Europe and could strain western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state has a role for international relations, also demanded that the government agenda add a declaration on the government’s position on the conflict in Ukraine, including a pledge to fulfilling alliance duties.

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