Czech Republic's 'Trumpist' PM-Elect Refuses to Divest Business Empire During Ethical Row
Andrej Babiš, the self-styled billionaire that secured victory in the recent parliamentary vote, has refused to sell his vast business interests, while asserting he will address a conflict of interest that could block him from assuming the role of head of government.
Position on Corporate Empire
Babiš, whose political movement came first in the October election but lacked a majority in parliament, declared in a social media post that he will not sell his Agrofert conglomerate, which operates in farming, food processing, and chemical industries.
“I have repeatedly said I will not sell Agrofert. I have repeatedly said I will address the ethical issue in compliance with national and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakeshop.”
Head of State's Requirement
The Czech president, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will remove ethical conflicts arising from his corporate dealings before assuming the role of prime minister.
The national charter “clearly mandates the head of state to take into account the possible emergence of a conflict of interest and the ways to address it” when appointing government ministers, Pavel's office explained.
The head of state “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement said, noting that Pavel was ready to designate Babiš as prime minister “without delay” once the issue was settled.
Business Operations and Legal Concerns
Babiš's numerous firms, mostly under the Agrofert umbrella, function in the Czech Republic and other regional countries, receiving substantial funds in national and EU agricultural and other subsidies, as well as government deals.
Under national legislation, cabinet members are barred from obtaining state support or contracts. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or stay out of government.
Previous Tenure and Current Intentions
Babiš affirmed he would “abide by the regulations” if appointed as premier, but declined to detail how in beforehand because the issue was “an highly personal and private affair for me, and journalists will invariably question me anyway”.
During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several court cases and an European inquiry over potential ethical issues. He placed his assets into fiduciary arrangements, while keeping certain control over them.
A judicial body and the EU executive both ruled that this did not suffice. Babiš confirmed last month that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to disclose specifics.
Coalition Agreement and International Implications
The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.
The new government, if approved, is expected to bolster the populist movement in the region and might strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.
Pavel, who as president shares responsibility for international relations, also demanded that the government agenda include a statement on the official stance on Russia’s war in Ukraine, with a commitment to fulfilling alliance duties.
The head of state has earlier stated he would not approve any ministerial nominees who might doubt the nation's international alliances, a requirement that the ultra-conservative party has said it will satisfy by nominating non-partisan experts.