Czech Populist Prime Minister-Elect Declines to Divest Business Empire During Conflict-of-Interest Dispute

Andrej Babiš, the self-proclaimed billionaire who won last month's parliamentary vote, has declined to sell his extensive corporate assets, while insisting he will resolve a conflict of interest that could block him from assuming the position of prime minister.

Position on Corporate Empire

Babiš, whose ANO party came first in the autumn election but lacked a parliamentary majority, declared in a social media post that he will not sell his Agrofert conglomerate, which is active in agriculture, food production, and chemicals.

“I have consistently stated I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in accordance with national and EU regulations,” the billionaire commented. “This is not like selling a roll in a bakery.”

President's Demand

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will eliminate conflicts of interest arising from his business activities before assuming the role of premier.

The national charter “clearly mandates the head of state to consider the potential occurrence of a conflict of interest and the ways to address it” when selecting government ministers, Pavel's office explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, stating that Pavel was prepared to designate Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Regulatory Issues

Babiš's several hundred firms, mostly under the Agrofert group, operate in the Czech Republic and other regional countries, receiving substantial funds in domestic and European agricultural and other subsidies, as well as government deals.

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

Past Tenure and Current Intentions

Babiš affirmed he would “follow the laws” if appointed as premier, but declined to detail how in advance because the issue was “an highly personal and personal matter for me, and the media will invariably criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over potential conflicts of interest. He placed his holdings into fiduciary arrangements, while retaining some influence over them.

A judicial body and the European Commission both ruled that this was insufficient. Babiš confirmed last month that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but refused to disclose details.

Coalition Agreement and International Consequences

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, 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 likely to strengthen the populist movement in central and eastern Europe and might challenge western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for foreign policy, also requested that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, including a commitment to meeting alliance duties.

The president has previously said he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a requirement that the ultra-conservative party has said it will meet by nominating non-partisan experts.