Czech 'Trumpist' PM-Elect Refuses to Divest Corporate Holdings During Conflict-of-Interest Row

Andrej Babiš, the self-styled billionaire that won last month's Czech election, has refused to sell his extensive corporate assets, while asserting he will resolve a conflict of interest that could prevent him from taking the position of head of government.

Position on Corporate Empire

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 operates in farming, food production, and chemicals.

“I have consistently said I will not sell Agrofert. I have consistently said I will address the ethical issue in compliance with Czech and EU regulations,” Babiš commented. “This is different from selling a pastry in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, announced 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 “clearly mandates the president to take into account the potential occurrence of a ethical issue and the ways to address it” when appointing government ministers, the presidential administration explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was prepared to designate Babiš as prime minister “immediately” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, mostly under the Agrofert umbrella, function in the nation and other central European states, benefiting from millions of euros in national and EU farming and other subsidies, as well as government deals.

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 sell, refuse public contracts, or stay out of public office.

Previous Tenure and Current Intentions

Babiš said he would “follow the regulations” if appointed as premier, but declined to detail how in beforehand because the matter was “an extremely sensitive and private affair for me, and journalists will invariably question me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over potential ethical issues. He temporarily moved his assets into fiduciary arrangements, 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 again the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but declined to disclose details.

Governing Agreement and International Implications

The wealthy politician has signed a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if confirmed, is likely to bolster the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also demanded that the coalition’s programme add a statement on the government’s position on Russia’s war in Ukraine, with a commitment to meeting alliance duties.

The president has earlier stated he would not approve any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by proposing independent technocrats.