Czech Populist Prime Minister-Elect Declines to Sell Corporate Holdings During Conflict-of-Interest Dispute

Andrej Babiš, the self-styled tycoon that secured victory in last month's Czech election, has refused to offload his vast business interests, while insisting he will address a ethical dilemma that could block him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose political movement came first in the autumn vote but lacked a parliamentary majority, stated in a online statement that he will not sell his Agrofert conglomerate, which is active in farming, food processing, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly said I will resolve the conflict of interest in compliance with national and EU regulations,” the billionaire remarked. “This is different from selling a roll in a bakeshop.”

President's Demand

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

The national charter “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, Pavel's office noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the statement said, stating that Pavel was ready to appoint Babiš as premier “without delay” once the matter was settled.

Corporate Activities and Legal Concerns

Babiš's numerous companies, primarily under the Agrofert group, function in the Czech Republic and other regional countries, benefiting from millions of euros in domestic and European farming and other grants, as well as public contracts.

Under Czech law, government ministers are barred from obtaining public aid or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse public contracts, or not enter public office.

Previous Tenure and Current Plans

Babiš said he would “follow the laws” if appointed as premier, but did not want to detail how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while retaining some influence over them.

A court and the EU executive both ruled that this did not suffice. Babiš confirmed recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but refused to reveal details.

Coalition Deal and Foreign Policy Implications

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if approved, is expected to bolster the populist bloc in central and eastern Europe and could strain western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.

The head of state has previously said he would not endorse any cabinet candidates who might question the Czech Republic’s international alliances, a requirement that the far-right SPD has said it will satisfy by nominating independent technocrats.