Andrej Babiš, the self-styled tycoon who won the recent parliamentary vote, has refused to offload his extensive business interests, while insisting he will address a ethical dilemma that could prevent him from taking the position of head of government.
Babiš, whose ANO party came first in the October vote but lacked a majority in parliament, declared in a online statement that he would not divest his Agrofert group, which is active in farming, food production, and chemical industries.
“I have consistently said I will not sell Agrofert. I have consistently stated I will address the ethical issue in accordance with national and EU regulations,” the billionaire commented. “This is different from selling a pastry in a bakeshop.”
The Czech president, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will eliminate conflicts of interest stemming from his corporate dealings before being appointed prime minister.
The Czech constitution “explicitly requires the president to take into account the possible emergence of a ethical issue and the ways to address it” when appointing government ministers, the presidential administration noted.
The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, noting that Pavel was prepared to designate Babiš as premier “without delay” once the issue was settled.
Babiš's several hundred companies, mostly under the Agrofert umbrella, function in the nation and other central European states, benefiting from substantial funds in domestic and European farming and other subsidies, as well as public contracts.
Under Czech law, cabinet members cannot receiving public aid or agreements. The anti-corruption organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, decline government deals, or stay out of government.
Babiš said he would “follow the regulations” if selected as prime minister, but declined to detail how in advance because the issue was “an extremely sensitive and private affair for me, and journalists will always criticise me regardless”.
During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over potential ethical issues. He placed his holdings into trust funds, while retaining certain control over them.
A judicial body and the European Commission both determined that this was insufficient. Babiš confirmed recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but declined to reveal details.
The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.
The incoming administration, if confirmed, is likely to strengthen the populist bloc in the region and might challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.
Pavel, who as president shares responsibility for international relations, also demanded that the coalition’s programme add a declaration on the official stance on the conflict in Ukraine, including a pledge to meeting Nato obligations.
The head of state has earlier said he would not approve any ministerial nominees who might question the Czech Republic’s international alliances, a requirement that the far-right SPD has said it will meet by nominating non-partisan experts.
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