Czech 'Trumpist' PM-Elect Refuses to Divest Corporate Holdings Amid Ethical Dispute

Andrej Babiš, the self-proclaimed tycoon that won last month's Czech election, has declined to offload his extensive corporate assets, while asserting he will address a ethical dilemma that might block him from assuming the position of head of government.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the October vote but did not secure a parliamentary majority, declared in a online statement that he will not sell his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have repeatedly said I will resolve the ethical issue in accordance with Czech and EU regulations,” the billionaire commented. “This is different from selling a roll in a bakery.”

Head of State's Requirement

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

The Czech constitution “explicitly requires the president to consider the possible emergence of a conflict of interest and the ways to address it” when selecting cabinet members, Pavel's office explained.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the announcement added, stating that Pavel was prepared to designate Babiš as premier “immediately” once the issue was resolved.

Business Operations and Legal Issues

Babiš's numerous companies, primarily under the Agrofert group, function in the Czech Republic and other regional countries, benefiting from substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers cannot obtaining state support or contracts. The ethics watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either divest, decline government deals, or not enter public office.

Previous Tenure and Present Intentions

Babiš affirmed he would “abide by the laws” if selected as premier, but did not want to detail how in beforehand 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 encountered multiple court cases and an EU investigation over possible ethical issues. He placed his holdings into fiduciary arrangements, while retaining certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but refused to disclose specifics.

Governing Agreement and Foreign Policy Consequences

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated 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 expected to strengthen 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 the nation's backing.

Pavel, who as head of state has a role for international relations, also requested that the government agenda include a declaration on the government’s position on the conflict in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has earlier stated he would not approve any cabinet candidates who might doubt the Czech Republic’s international alliances, a condition that the ultra-conservative party has said it will meet by proposing non-partisan experts.