🔗 Share this article

Andrej Babiš, the self-styled billionaire who won last month's parliamentary vote, has declined to sell his vast corporate assets, while asserting he will resolve a ethical dilemma that might prevent him from taking the position of prime minister.

Position on Business Holdings

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 group, which operates in farming, food processing, and chemical industries.

“I have consistently said I will never sell Agrofert. I have repeatedly stated I will resolve the ethical issue in compliance with Czech and European laws,” the billionaire commented. “This is not like selling a pastry in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will eliminate ethical conflicts arising from his corporate dealings before being appointed premier.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was prepared to appoint Babiš as premier “without delay” once the matter was resolved.

Corporate Activities and Legal Concerns

Babiš's several hundred companies, primarily under the Agrofert umbrella, function in the Czech Republic and other central European states, benefiting from millions of euros in domestic and European agricultural and other grants, as well as government deals.

Under national legislation, government ministers cannot obtaining public aid or contracts. The ethics watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either divest, decline government deals, or not enter public office.

Past Term and Present Plans

Babiš affirmed he would “abide by the regulations” if appointed as premier, but declined to detail how in advance because the issue was “an extremely sensitive and private affair for me, and journalists will always criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible conflicts of interest. He placed his holdings into trust funds, while keeping certain control over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated last month that he was again the sole owner of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but refused to disclose details.

Governing Deal and International Implications

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The new government, if confirmed, is expected to strengthen the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, including a pledge to meeting alliance duties.

The head of state has previously said he would not endorse any ministerial nominees who might doubt the Czech Republic’s international alliances, a condition that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.