🔗 Share this article

Andrej Babiš, the self-proclaimed billionaire who won the recent Czech election, has declined to offload his extensive business interests, while asserting he will address a ethical dilemma that might block him from taking the position of head of government.

Position on Corporate Empire

Babiš, whose political movement came first in the autumn vote but lacked a majority in parliament, declared in a online statement that he would not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have consistently said I will address the ethical issue in compliance with national and EU regulations,” the billionaire remarked. “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 populist must publicly explain how he will remove ethical conflicts stemming from his corporate dealings before being appointed prime minister.

The Czech constitution “clearly mandates the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration noted.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was ready to designate Babiš as prime minister “without delay” once the issue was settled.

Corporate Activities and Legal Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, function in the nation and other central European countries, benefiting from substantial funds in domestic and European agricultural and other grants, as well as government deals.

Under Czech law, government ministers are barred from obtaining state support or agreements. The ethics organization Transparency International has stated that to avoid a ethical breach, Babiš must either sell, decline public contracts, or not enter public office.

Past Tenure and Current Plans

Babiš said he would “follow the laws” if selected as premier, but declined to explain how in advance because the matter was “an highly personal and private affair for me, and the media will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an European inquiry over potential ethical issues. He temporarily moved his assets into trust funds, while keeping some influence over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš stated last month that he was again the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but declined to reveal specifics.

Governing Deal and Foreign Policy Implications

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 exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is likely to strengthen the populist bloc in the region and could strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also requested that the government agenda include a statement on the government’s position on Russia’s war in Ukraine, with a pledge to meeting Nato obligations.

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