🔗 Share this article

Andrej Babiš, the self-styled billionaire that secured victory in 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 role of head of government.

Position on Corporate Empire

Babiš, whose political movement came first in the autumn election but did not secure a parliamentary majority, declared in a online statement that he will not sell his Agrofert group, which is active in farming, food processing, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in compliance with national and European laws,” the billionaire remarked. “This is different from selling a roll in a bakery.”

President's Demand

The head of state, Petr Pavel, stated that the elderly political figure must clarify openly how he will remove conflicts of interest stemming from his business activities before assuming the role of premier.

The national charter “explicitly requires the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when appointing government ministers, Pavel's office explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement said, stating that Pavel was prepared to designate Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, operate 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 public contracts.

Under Czech law, government ministers cannot receiving state support or contracts. The ethics organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, refuse public contracts, or not enter government.

Past Tenure and Present Intentions

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

During his first term as premier, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over possible conflicts of interest. He placed his assets into fiduciary arrangements, while retaining some influence over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš stated last month that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but refused to reveal specifics.

Governing Deal and Foreign Policy Consequences

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if approved, is likely to bolster the populist movement in the region and could strain western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme include a declaration on the official stance on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

The president has earlier stated he would not approve any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has said it will satisfy by nominating non-partisan experts.