Czech 'Trumpist' Prime Minister-Elect Declines to Sell Business Empire During Conflict-of-Interest Row

Andrej Babiš, the self-proclaimed billionaire who secured victory in the recent Czech election, has declined to sell his extensive business interests, while insisting he will address a ethical dilemma that could block him from assuming the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October vote but lacked a parliamentary majority, declared in a online statement that he would not divest his Agrofert group, which is active in agriculture, food processing, and chemicals.

“I have repeatedly said I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in accordance with national and EU regulations,” the billionaire commented. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, stated that the elderly populist must clarify openly how he will remove ethical conflicts stemming from his corporate dealings before being appointed prime minister.

The Czech constitution “clearly mandates the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when selecting government ministers, the presidential administration noted.

The head of state “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to appoint Babiš as prime minister “immediately” once the matter was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional states, receiving substantial funds in domestic and European agricultural and other subsidies, as well as government deals.

Under national legislation, government ministers are barred from receiving public aid or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, refuse public contracts, or stay out of government.

Previous Tenure and Current Intentions

Babiš said he would “abide by the laws” if appointed as premier, but declined to explain how in beforehand because the matter was “an highly personal 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 encountered multiple legal battles and an European inquiry over possible conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

A court and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was again the sole owner of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but refused to reveal specifics.

Coalition Deal and International Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if confirmed, is likely to bolster the populist bloc in central and eastern Europe and might strain western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for foreign policy, also demanded that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The president has previously stated he would not endorse any cabinet candidates who might question the nation's international alliances, a condition that the far-right SPD has said it will meet by nominating independent technocrats.