Czech Republic's 'Trumpist' Prime Minister-Elect Declines to Sell Business Empire Amid Ethical Row

Andrej Babiš, the self-styled billionaire who secured victory in last month's parliamentary vote, has refused to offload his vast business interests, while insisting he will address a conflict of interest that could prevent him from taking the role of head of government.

Stance on Business Holdings

Babiš, whose political movement came first in the autumn vote but did not secure a majority in parliament, declared in a online statement that he will not divest his Agrofert group, which operates in farming, food processing, and chemicals.

“I have repeatedly said I will not sell Agrofert. I have consistently stated I will address the conflict of interest in accordance with Czech and European laws,” the billionaire commented. “This is not like selling a roll in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, stated that the elderly political figure must clarify openly how he will remove conflicts of interest arising from his business activities before assuming the role of premier.

The national charter “explicitly requires the president to consider the possible emergence of a ethical issue and the ways to address it” when appointing cabinet members, the presidential administration explained.

The president “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the statement added, stating that Pavel was ready to appoint Babiš as prime minister “immediately” once the matter was settled.

Corporate Activities and Legal Issues

Babiš's numerous companies, mostly under the Agrofert group, function in the nation and other regional countries, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as public contracts.

Under Czech law, government ministers are barred from obtaining state support or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or not enter public office.

Past Tenure and Current Intentions

Babiš affirmed he would “follow the laws” if appointed as premier, but declined to explain how in beforehand because the matter 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 placed his assets into fiduciary arrangements, while retaining certain control over them.

A court and the European Commission both ruled that this was insufficient. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to disclose specifics.

Governing Deal and Foreign Policy Implications

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly 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 new government, if confirmed, is expected to bolster the populist bloc in the region and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s leader, 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 government’s position on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

The head of state has earlier said he would not approve any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the far-right SPD has said it will satisfy by proposing independent technocrats.