🔗 Share this article

Andrej Babiš, the self-styled billionaire that won last month's Czech election, has refused to sell his vast corporate assets, while insisting he will resolve a ethical dilemma that could block him from taking the role of head of government.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn vote but did not secure a majority in parliament, stated in a online statement that he will not sell his Agrofert group, which is active in farming, food production, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have consistently said I will address the conflict of interest in compliance with national and European laws,” the billionaire remarked. “This is not like selling a roll in a bakery.”

President's Requirement

The Czech president, Petr Pavel, stated that the elderly political figure must clarify openly how he will eliminate ethical conflicts arising from his corporate dealings before assuming the role of premier.

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

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the statement added, stating that Pavel was ready to designate Babiš as premier “immediately” once the matter was resolved.

Business Operations and Regulatory Issues

Babiš's numerous companies, primarily under the Agrofert umbrella, function in the Czech Republic and other central European countries, benefiting from millions of euros in domestic and European farming and other subsidies, as well as government deals.

Under Czech law, government ministers cannot obtaining public aid or agreements. The anti-corruption watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either sell, decline public contracts, or stay out of government.

Past Term and Present Intentions

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

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over potential ethical issues. He temporarily moved his assets into trust funds, while keeping certain control over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš stated recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to reveal details.

Coalition Deal and Foreign Policy Implications

The billionaire populist 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 mainly opposed the EU’s environmental policy.

The incoming administration, if confirmed, is likely to strengthen the populist bloc in central and eastern Europe and could challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for international relations, also demanded that the government agenda include a declaration on the government’s position on the conflict in Ukraine, including a pledge to fulfilling alliance duties.

The head of state has previously said he would not approve any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has indicated it will meet by proposing independent technocrats.