Czech Republic's 'Trumpist' PM-Elect Declines to Sell Corporate Holdings Amid Ethical Row

Andrej Babiš, the self-proclaimed tycoon who secured victory in the recent Czech election, has refused to sell his vast corporate assets, while insisting he will address a ethical dilemma that might block him from taking the role of prime minister.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but did not secure a majority in parliament, declared in a online statement that he will not sell his Agrofert group, which is active in farming, food processing, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with national and European laws,” Babiš remarked. “This is different from selling a roll in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the elderly political figure must clarify openly how he will eliminate ethical conflicts arising from his business activities before assuming the role of prime minister.

The national charter “explicitly requires the president to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, Pavel's office noted.

The head of state “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 prime minister “immediately” once the issue was settled.

Business Operations and Regulatory Issues

Babiš's numerous companies, mostly under the Agrofert group, operate in the nation and other central European countries, benefiting from substantial funds in domestic and European farming and other subsidies, as well as government deals.

Under national legislation, government ministers are barred from obtaining state support or agreements. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or stay out of public office.

Previous Tenure and Current Intentions

Babiš affirmed he would “follow the laws” if selected as premier, but did not want to explain how in beforehand because the issue was “an extremely sensitive and personal matter for me, and the media will invariably question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but declined to reveal details.

Governing Agreement and International Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The incoming administration, if approved, is expected to bolster the populist bloc in central and eastern Europe and could challenge western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for foreign policy, also demanded that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, with a pledge to fulfilling Nato obligations.

The head of state has previously stated he would not approve any ministerial nominees who might doubt the nation's EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will satisfy by nominating independent technocrats.