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

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

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the October election but lacked a majority in parliament, declared in a online statement that he will not sell his Agrofert group, which operates in farming, food production, and chemicals.

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

President's Demand

The head of state, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove ethical conflicts stemming from his corporate dealings before being appointed prime minister.

The Czech constitution “clearly mandates the president to consider the possible emergence of a ethical issue and the ways to address it” when selecting government ministers, the presidential administration noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement said, stating that Pavel was prepared to designate Babiš as prime minister “immediately” once the issue was resolved.

Corporate Activities and Legal Concerns

Babiš's numerous firms, mostly under the Agrofert group, operate in the Czech Republic and other central European countries, receiving millions of euros in domestic and European agricultural and other grants, as well as public contracts.

Under national legislation, government ministers cannot obtaining state support or agreements. The anti-corruption organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, refuse public contracts, or not enter public office.

Previous Tenure and Present Plans

Babiš affirmed he would “follow the regulations” if selected as premier, but declined to detail how in advance because the matter was “an highly personal and personal matter for me, and the media will invariably question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over potential ethical issues. He temporarily moved his holdings into trust funds, while keeping certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but refused to reveal specifics.

Coalition Deal and Foreign Policy Implications

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if confirmed, is expected to bolster the populist bloc in the region and could challenge western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme add a statement on the official stance on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

The head of state has previously said he would not approve any cabinet candidates who might doubt the nation's international alliances, a condition that the ultra-conservative party has indicated it will satisfy by proposing non-partisan experts.