Czech Populist PM-Elect Refuses to Sell Corporate Holdings Amid Conflict-of-Interest Row

Andrej Babiš, the self-styled tycoon that secured victory in last month's parliamentary vote, has declined to sell his vast business interests, while asserting he will resolve a conflict of interest that might prevent him from assuming the role of head of government.

Position on Corporate Empire

Babiš, whose political movement came first in the October election but did not secure a parliamentary majority, declared in a online statement that he will 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 compliance with Czech and European laws,” Babiš commented. “This is not like selling a roll in a bakeshop.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove conflicts of interest arising from his business activities before being appointed premier.

The national charter “clearly mandates the head of state to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the announcement said, noting that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was resolved.

Corporate Activities and Legal Issues

Babiš's numerous firms, 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, cabinet members are barred from receiving state support or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, decline government deals, or not enter public office.

Previous Term and Current Plans

Babiš said he would “follow the laws” if appointed as premier, but did not want to explain how in advance because the matter was “an extremely sensitive and private affair for me, and the media will always question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over potential conflicts of interest. He placed his assets into fiduciary arrangements, while retaining certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but refused to disclose details.

Governing Deal and International Implications

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly 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 strengthen the populist bloc in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

The head of state has previously stated he would not approve any ministerial nominees who might question the nation's EU and Nato commitments, a condition that the far-right SPD has said it will meet by proposing non-partisan experts.