Czech Populist Prime Minister-Elect Declines to Divest Business Empire Amid Ethical Row

Andrej Babiš, the self-styled tycoon who won the recent parliamentary vote, has declined to sell his extensive corporate assets, while insisting he will address a conflict of interest that could block him from assuming the position of head of government.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the October election but lacked a parliamentary majority, declared in a online statement that he would not sell his Agrofert conglomerate, which operates in farming, food processing, and chemical industries.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with national and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakery.”

President's Demand

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

The Czech constitution “clearly mandates the president to take into account the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil 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 Legal Concerns

Babiš's numerous companies, mostly under the Agrofert group, operate in the nation and other central European countries, receiving substantial funds in national and EU agricultural and other grants, as well as government deals.

Under Czech law, government ministers cannot receiving public aid or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, decline public contracts, or stay out of government.

Previous Term and Present Plans

Babiš affirmed he would “abide by the regulations” if selected as premier, but did not want to detail how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will invariably question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over potential ethical issues. He placed his holdings into trust funds, while retaining certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš stated last month that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but declined to disclose details.

Coalition Agreement and International Consequences

The billionaire populist has signed a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if confirmed, is likely to bolster the populist movement in the region and might challenge 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 president shares responsibility for foreign policy, also requested that the coalition’s programme add a statement on the government’s position on Russia’s war in Ukraine, with a pledge to meeting alliance duties.

The president has previously said he would not endorse any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by proposing independent technocrats.