Czech Republic's 'Trumpist' PM-Elect Refuses to Divest Business Empire During Conflict-of-Interest Row

Andrej Babiš, the self-styled billionaire who won last month's Czech election, has declined to sell his vast corporate assets, while insisting he will address a conflict of interest that might block him from assuming the position of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the autumn vote but did not secure a parliamentary majority, stated in a social media post that he will not sell his Agrofert conglomerate, which is active in agriculture, food production, and chemical industries.

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

President's Demand

The head of state, Petr Pavel, announced that the elderly political figure must publicly explain how he will eliminate conflicts of interest stemming from his corporate dealings before assuming the role of premier.

The national charter “clearly mandates the head of state to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting government ministers, Pavel's office explained.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, noting that Pavel was prepared to designate Babiš as premier “immediately” once the matter was settled.

Business Operations and Regulatory Issues

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

Under Czech law, government ministers cannot obtaining public aid or agreements. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or stay out of public office.

Past Term and Present Intentions

Babiš said he would “follow the laws” if appointed as prime minister, but did not want to detail how in beforehand because the issue was “an extremely sensitive and personal matter for me, and the media will invariably criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential ethical issues. He placed his assets into fiduciary arrangements, while retaining certain control over them.

A court and the European Commission both ruled that this was insufficient. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but declined to disclose details.

Governing Deal and International Consequences

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

The incoming administration, if approved, is expected to bolster the populist bloc in central and eastern Europe and might challenge western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda include a declaration on the official stance on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The president has earlier said he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by nominating non-partisan experts.