Czech Republic's 'Trumpist' PM-Elect Refuses to Sell Corporate Holdings Amid Conflict-of-Interest Row

Andrej Babiš, the self-proclaimed billionaire who won last month's Czech election, has refused to sell his vast business interests, while insisting he will resolve a conflict of interest that might block him from taking the role of head of government.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a majority in parliament, declared in a social media post that he would not divest his Agrofert conglomerate, which operates in farming, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in accordance with Czech and European laws,” Babiš commented. “This is not like selling a roll in a bakery.”

Head of State's Requirement

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

The Czech constitution “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 selecting cabinet members, the presidential administration explained.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was prepared to designate Babiš as premier “immediately” once the issue was settled.

Corporate Activities and Legal Concerns

Babiš's numerous companies, primarily under the Agrofert umbrella, function in the nation and other regional countries, receiving millions of euros in national and EU farming and other subsidies, as well as government deals.

Under national legislation, cabinet members cannot receiving public aid or contracts. The ethics organization Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, decline government deals, or not enter government.

Past Term and Present Intentions

Babiš said he would “follow the laws” if selected as premier, but did not want to detail how in advance because the matter was “an highly personal and private affair for me, and the media will always criticise 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 placed his assets into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both ruled that this did not suffice. Babiš stated recently that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but refused to disclose specifics.

Coalition Deal and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The incoming administration, if approved, is expected to strengthen the populist bloc in central and eastern Europe and might challenge backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the government agenda include a declaration on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The president has previously said he would not approve any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has said it will satisfy by nominating independent technocrats.