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

Andrej Babiš, the self-proclaimed billionaire who won the recent Czech election, has refused to offload his vast corporate assets, while asserting he will resolve a ethical dilemma that could block him from taking the position of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but lacked a majority in parliament, declared in a social media post that he will not sell his Agrofert group, which is active in farming, food production, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with Czech and European laws,” the billionaire commented. “This is different from selling a pastry in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will remove conflicts of interest stemming from his corporate dealings before being appointed prime minister.

The national charter “explicitly requires the head of state to take into account the possible emergence of a ethical issue and the ways to address it” when selecting cabinet members, Pavel's office explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, stating that Pavel was prepared to appoint Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Legal Issues

Babiš's several hundred firms, primarily under the Agrofert umbrella, operate in the Czech Republic and other central European countries, benefiting from substantial funds in domestic and European agricultural and other grants, as well as government deals.

Under Czech law, government ministers cannot receiving state support or contracts. The ethics organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline public contracts, or stay out of government.

Previous Term and Current Plans

Babiš said he would “follow the regulations” if selected as prime minister, but did not want to explain how in beforehand because the issue was “an extremely sensitive and personal matter for me, and the media will always criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into trust funds, while retaining certain control over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš stated last month that he was again the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but declined to disclose details.

Governing Agreement and International Implications

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if approved, is likely to bolster the populist movement in central and eastern Europe and could challenge western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for international relations, also requested that the government agenda include a declaration on the government’s position on the conflict in Ukraine, with a commitment to fulfilling alliance duties.

The president has earlier said he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by proposing independent technocrats.