Czech Republic's 'Trumpist' PM-Elect Refuses to Divest Business Empire During Ethical Row

Andrej Babiš, the self-styled tycoon who won the recent Czech election, has declined to sell his extensive business interests, while asserting he will resolve a ethical dilemma that could block him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose political movement came first in the October vote but lacked a majority in parliament, stated in a online statement that he would not divest his Agrofert group, which is active in farming, food processing, and chemicals.

“I have consistently stated I will never sell Agrofert. I have consistently stated I will address the conflict of interest in accordance with Czech and European laws,” the billionaire commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, stated that the elderly political figure must publicly explain how he will eliminate ethical conflicts stemming from his business activities before assuming the role of premier.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, the presidential administration explained.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the announcement said, stating that Pavel was ready to designate Babiš as prime minister “immediately” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the Czech Republic and other regional countries, benefiting from substantial funds in domestic and European agricultural and other subsidies, as well as public contracts.

Under Czech law, government ministers are barred from obtaining public aid or agreements. The ethics organization Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, decline public contracts, or stay out of public office.

Previous Tenure and Current Intentions

Babiš said he would “abide by the regulations” if appointed as premier, but declined to explain how in advance because the issue was “an extremely sensitive and private affair for me, and the media will invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several court cases and an EU investigation over possible ethical issues. He placed his assets into trust funds, while keeping some influence over them.

A court and the EU executive both ruled that this did not suffice. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but refused to reveal specifics.

Coalition Agreement and International Consequences

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is likely to bolster the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also requested that the government agenda include a declaration on the official stance on the conflict in Ukraine, with a pledge to fulfilling Nato obligations.

The president has earlier said he would not approve any ministerial nominees who might doubt the nation's international alliances, a requirement that the ultra-conservative party has indicated it will meet by nominating non-partisan experts.