Czech 'Trumpist' PM-Elect Refuses to Sell Corporate Holdings Amid Ethical Dispute

Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent Czech election, has declined to offload his vast business interests, while asserting he will address a conflict of interest that might prevent him from assuming the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party came first in the October vote but did not secure a majority in parliament, stated in a online statement that he will not sell his Agrofert group, which operates in agriculture, food processing, and chemical industries.

“I have consistently said I will never sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with national and European laws,” the billionaire commented. “This is different from selling a pastry in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will remove ethical conflicts stemming from his corporate dealings before being appointed prime minister.

The national charter “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting cabinet members, the presidential administration noted.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, stating that Pavel was ready to appoint Babiš as premier “without delay” once the matter was resolved.

Business Operations and Regulatory Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the nation and other regional countries, benefiting from substantial funds in domestic and European agricultural and other grants, as well as government deals.

Under Czech law, cabinet members are barred from receiving public aid or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse public contracts, or stay out of government.

Previous Tenure and Current Plans

Babiš said he would “follow the regulations” if selected as premier, but declined to detail how in advance because the issue was “an highly personal and private affair for me, and the media will invariably question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over possible conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while keeping certain control over them.

A court and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but declined to disclose details.

Governing Agreement and Foreign Policy Consequences

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if approved, is likely to bolster the populist bloc in the region and could strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

The head of state has previously stated he would not approve any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by nominating non-partisan experts.