🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent parliamentary vote, has refused to sell his extensive corporate assets, while insisting he will address a ethical dilemma that could block him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose political movement came first in the autumn vote but did not secure a majority in parliament, stated in a social media post that he will not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have repeatedly said I will address the conflict of interest in accordance with national and European laws,” Babiš remarked. “This is not like selling a pastry in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will remove ethical conflicts stemming from his business activities before assuming the role of premier.

The national charter “explicitly requires the head of state to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the statement added, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, primarily under the Agrofert group, function in the Czech Republic and other central European states, receiving substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members are barred from receiving public aid or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse public contracts, or not enter government.

Past Term and Current Intentions

Babiš said he would “follow the regulations” if appointed as premier, but did not want to explain how in advance because the matter was “an extremely sensitive and personal matter for me, and the media will always question me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over possible ethical issues. He placed his holdings into trust funds, while keeping certain control over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš confirmed last month that he was again the sole owner of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but refused to reveal specifics.

Governing Deal and International Consequences

The billionaire populist has signed a governing pact 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 campaigned against the EU’s environmental policy.

The incoming administration, if approved, is expected 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 president, Volodymyr Zelenskyy, to assure him of the nation's backing.

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

The head of state has previously stated he would not approve any ministerial nominees who might doubt the nation's international alliances, a condition that the ultra-conservative party has said it will meet by nominating independent technocrats.