Czech 'Trumpist' PM-Elect Refuses to Divest Business Empire During Conflict-of-Interest Dispute

Andrej Babiš, the self-proclaimed billionaire that secured victory in the recent parliamentary vote, has refused to offload his extensive business interests, while insisting he will address a conflict of interest that could block him from taking the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a majority in parliament, declared in a online statement that he would not sell his Agrofert conglomerate, which is active in farming, food processing, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have consistently stated I will resolve the ethical issue in accordance with national and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakery.”

President's Requirement

The head of state, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will eliminate conflicts of interest stemming from his corporate dealings before assuming the role of prime minister.

The national charter “explicitly requires the head of state to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, stating that Pavel was ready to appoint Babiš as premier “without delay” once the matter was resolved.

Business Operations and Regulatory Issues

Babiš's several hundred firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European states, benefiting from millions of euros in domestic and European farming and other grants, as well as government deals.

Under Czech law, government ministers cannot receiving state support or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or not enter government.

Previous Tenure and Current Plans

Babiš said he would “abide by the regulations” if appointed as prime minister, but did not want to explain how in beforehand because the matter was “an highly personal and personal matter for me, and journalists will always question me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible ethical issues. He placed his assets into fiduciary arrangements, while keeping some influence over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but refused to reveal details.

Governing Agreement and Foreign Policy Implications

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The new government, if approved, is expected to bolster 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 foreign policy, also requested that the government agenda include a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to fulfilling Nato obligations.

The president has previously stated he would not endorse any ministerial nominees who might question the nation's EU and Nato commitments, a condition that the ultra-conservative party has indicated it will satisfy by proposing independent technocrats.