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

Andrej Babiš, the self-proclaimed tycoon who won last month's Czech election, has refused to offload his extensive business interests, while asserting he will address a conflict of interest that might prevent him from taking the role of head of government.

Position on Business Holdings

Babiš, whose political movement came first in the autumn election but lacked a parliamentary majority, declared in a online statement that he will not sell his Agrofert conglomerate, which is active in farming, food processing, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in accordance with national and EU regulations,” the billionaire remarked. “This is different from selling a roll in a bakeshop.”

President's Demand

The head of state, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will remove ethical conflicts stemming from his corporate dealings before assuming the role of premier.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, Pavel's office noted.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the announcement said, noting that Pavel was ready to designate Babiš as prime minister “immediately” once the issue was resolved.

Business Operations and Legal Issues

Babiš's several hundred companies, primarily under the Agrofert group, function in the Czech Republic and other central European countries, benefiting from substantial funds in domestic and European agricultural and other grants, as well as public contracts.

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

Previous Term and Current Intentions

Babiš affirmed he would “abide by the laws” if appointed as premier, but did not want to detail how in beforehand because the matter was “an extremely sensitive and personal matter for me, and journalists will always criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over potential conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but declined to reveal specifics.

Coalition Deal and Foreign Policy Implications

The wealthy politician has signed a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The new government, if confirmed, is likely to bolster the populist bloc in central and eastern Europe and could strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also requested that the coalition’s programme include a declaration on the government’s position on Russia’s war in Ukraine, including a pledge to fulfilling Nato obligations.

The president has previously stated he would not endorse any cabinet candidates who might doubt the nation's international alliances, a requirement that the ultra-conservative party has indicated it will meet by proposing independent technocrats.