Andrej Babiš, the self-styled billionaire that won the recent Czech election, has declined to sell his extensive business interests, while asserting he will resolve a ethical dilemma that might block him from assuming the position of head of government.
Babiš, whose political movement came first in the autumn vote but did not secure a parliamentary majority, declared in a online statement that he will not sell his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.
“I have consistently stated I will not sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with Czech and EU regulations,” the billionaire commented. “This is different from selling a pastry in a bakeshop.”
The head of state, 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 premier.
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 selecting government ministers, Pavel's office noted.
The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the issue was resolved.
Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional countries, benefiting from millions of euros in national and EU farming and other grants, as well as public contracts.
Under national legislation, cabinet members cannot receiving state support or contracts. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline government deals, or stay out of public office.
Babiš affirmed he would “follow the regulations” if appointed as prime minister, but declined to explain how in beforehand because the matter was “an highly personal and personal matter for me, and journalists will always criticise me regardless”.
During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.
A court and the EU executive both ruled that this did not suffice. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but refused to reveal details.
The billionaire populist has signed a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.
The new government, if approved, is likely to bolster the populist bloc in central and eastern Europe and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.
Pavel, who as president has a role for foreign policy, also requested that the government agenda include a statement on the official stance on Russia’s war in Ukraine, with a commitment to meeting Nato obligations.
The president has earlier stated he would not approve any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has said it will meet by proposing non-partisan experts.
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