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

Andrej Babiš, the self-styled tycoon who secured victory in last month's Czech election, has declined to sell his extensive business interests, while asserting he will resolve a conflict of interest that might block him from assuming the position of prime minister.

Position on Corporate Empire

Babiš, whose political movement came first in the October election but lacked a majority in parliament, stated in a social media post that he would not sell his Agrofert conglomerate, which is active in farming, food production, and chemical industries.

“I have consistently stated I will not sell Agrofert. I have consistently said I will resolve the ethical issue in accordance with Czech and European laws,” Babiš commented. “This is not like selling a pastry in a bakery.”

President's Requirement

The head of state, Petr Pavel, stated that the elderly populist must publicly explain how he will eliminate ethical conflicts arising from his business activities before being appointed prime minister.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting government ministers, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the announcement added, noting that Pavel was ready to appoint Babiš as premier “without delay” once the matter was resolved.

Corporate Activities and Legal Issues

Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the nation and other regional countries, benefiting from millions of euros in national and EU farming and other grants, as well as public contracts.

Under national legislation, government ministers cannot receiving state support or agreements. The ethics organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or stay out of public office.

Previous Term and Current Intentions

Babiš affirmed he would “follow the laws” if selected as prime minister, but did not want to detail how in advance because the issue was “an extremely sensitive and personal matter for me, and journalists will invariably criticise me anyway”.

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

A court and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but declined to reveal details.

Governing Deal and Foreign Policy Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if approved, is expected to bolster the populist bloc in the region and might strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for international relations, also demanded that the coalition’s programme include a declaration 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 international alliances, a requirement that the far-right SPD has indicated it will meet by nominating independent technocrats.