Czech 'Trumpist' PM-Elect Refuses to Divest Business Empire Amid Ethical Row

Andrej Babiš, the self-proclaimed tycoon who won last month's Czech election, has refused to offload his extensive corporate assets, while asserting he will resolve a conflict of interest that might block him from taking the position of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October vote but lacked a majority in parliament, declared in a social media post that he would not divest his Agrofert conglomerate, which operates in farming, food production, and chemical industries.

“I have consistently said I will never sell Agrofert. I have repeatedly said I will address the ethical issue in accordance with Czech and EU regulations,” Babiš remarked. “This is different from selling a pastry in a bakery.”

President's Demand

The head of state, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will remove conflicts of interest arising from his business activities before being appointed prime minister.

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, Pavel's office explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was ready to designate Babiš as premier “without delay” once the issue was settled.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, primarily under the Agrofert umbrella, operate in the Czech Republic and other central European countries, receiving substantial funds in national and EU farming and other subsidies, as well as government deals.

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The ethics watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or stay out of government.

Previous Tenure and Present Plans

Babiš affirmed he would “follow the regulations” if selected as premier, but declined to explain how in advance because the matter was “an extremely sensitive and private affair for me, and journalists will always question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over potential ethical issues. He temporarily moved his holdings into trust funds, while keeping some influence over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to disclose details.

Governing Agreement and International Consequences

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if approved, is likely to strengthen the populist movement in central and eastern Europe and could strain western support 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 foreign policy, also requested that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, including a commitment to meeting alliance duties.

The head of state has previously stated he would not endorse any cabinet candidates who might doubt the nation's international alliances, a requirement that the far-right SPD has said it will satisfy by proposing non-partisan experts.