Czech Republic's 'Trumpist' Prime Minister-Elect Refuses to Divest Corporate Holdings During Ethical Row

Andrej Babiš, the self-proclaimed tycoon who won last month's parliamentary vote, has refused to sell his extensive business interests, while asserting he will address a ethical dilemma that might block him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the autumn election but did not secure a majority in parliament, declared in a online statement that he would not sell his Agrofert group, which is active in farming, food production, and chemical industries.

“I have consistently said I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in accordance with Czech and European laws,” the billionaire commented. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will remove conflicts of interest 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 possibilities for its resolution” when selecting government ministers, Pavel's office noted.

The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was prepared to appoint Babiš as prime minister “immediately” once the matter was resolved.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, operate in the Czech Republic and other regional states, benefiting from millions of euros in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot receiving public aid or agreements. The ethics watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either divest, refuse government deals, or stay out of government.

Previous Term and Present Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but declined to explain how in advance because the issue was “an highly personal and private affair for me, and journalists will invariably criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over potential conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while keeping certain control over them.

A court and the European Commission both ruled that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but refused to disclose details.

Coalition Deal and Foreign Policy Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if approved, is expected to bolster the populist bloc in central and eastern Europe and could challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

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 Russia’s war in Ukraine, including a commitment to fulfilling Nato obligations.

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