Czech Republic's Populist PM-Elect Declines to Sell Corporate Holdings Amid Conflict-of-Interest Dispute

Andrej Babiš, the self-proclaimed billionaire who won last month's Czech election, has declined to sell his vast business interests, while asserting he will resolve a ethical dilemma that might prevent him from taking the role of head of government.

Stance on Business Holdings

Babiš, whose political movement came first in the October vote but lacked a majority in parliament, declared in a online statement that he would not sell his Agrofert conglomerate, which operates in farming, food production, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly said I will address the ethical issue in compliance with national and EU regulations,” the billionaire commented. “This is not like selling a roll in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, stated that the elderly populist must clarify openly how he will eliminate ethical conflicts stemming from his corporate dealings before being appointed prime minister.

The national charter “clearly mandates the president to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, the presidential administration noted.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, stating that Pavel was prepared to designate Babiš as premier “without delay” once the matter was settled.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the Czech Republic and other central European countries, benefiting from millions of euros in national and EU farming and other subsidies, as well as public contracts.

Under Czech law, government ministers are barred from receiving state support or agreements. The anti-corruption watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, decline government deals, or stay out of government.

Previous Term and Present Intentions

Babiš said he would “abide by the laws” if appointed as prime minister, but declined to detail how in beforehand because the issue was “an highly personal and private affair for me, and journalists will always criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over potential ethical issues. He temporarily moved his holdings into trust funds, while keeping certain control over them.

A court and the European Commission both determined that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but refused to disclose specifics.

Coalition Agreement and Foreign Policy Consequences

The wealthy politician has signed a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to bolster the populist movement in the region and could challenge western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda include a declaration on the official stance on the conflict in Ukraine, with a commitment to fulfilling alliance duties.

The president has previously said he would not approve any ministerial nominees who might question the nation's international alliances, a condition that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.