Czech Republic's Populist PM-Elect Refuses to Divest Business Empire During Conflict-of-Interest Row

Andrej Babiš, the self-styled billionaire that won the recent Czech election, has refused to sell his extensive corporate assets, while asserting he will address a conflict of interest that could prevent him from taking the position of prime minister.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn vote but did not secure a majority in parliament, declared in a online statement that he would not divest his Agrofert group, which operates in farming, food processing, and chemical industries.

“I have repeatedly stated I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with Czech and EU regulations,” the billionaire remarked. “This is not like selling a pastry in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove ethical conflicts stemming from his corporate dealings before being appointed premier.

The Czech constitution “explicitly requires the president to consider the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, Pavel's office noted.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, stating that Pavel was ready to designate Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, function in the Czech Republic and other regional countries, receiving millions of euros in national and EU farming and other grants, as well as public contracts.

Under national legislation, cabinet members cannot receiving public aid or agreements. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or not enter public office.

Past Term and Present Plans

Babiš affirmed he would “abide by the laws” if selected as prime minister, but did not want to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and the media will always criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping some influence over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but declined to reveal details.

Coalition Deal and International Consequences

The wealthy politician has signed a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The incoming administration, if approved, is likely to bolster 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 head of state has a role for international relations, also requested that the coalition’s programme include a statement on the government’s position on Russia’s war in Ukraine, including a pledge to fulfilling alliance duties.

The president 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 ultra-conservative party has said it will satisfy by proposing independent technocrats.