🔗 Share this article Czech Republic's Populist Prime Minister-Elect Refuses to Divest Corporate Holdings Amid Ethical Dispute Andrej Babiš, the self-proclaimed tycoon who secured victory in the recent parliamentary vote, has refused to sell his vast business interests, while asserting he will resolve a ethical dilemma that could prevent him from assuming the role of prime minister. Position on Business Holdings Babiš, whose political movement came first in the October vote but lacked a parliamentary majority, stated in a social media post that he would not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries. “I have repeatedly said I will not sell Agrofert. I have repeatedly said I will address the ethical issue in compliance with Czech and EU regulations,” Babiš commented. “This is not like selling a roll in a bakery.” Head of State's Requirement The head of state, Petr Pavel, announced that the elderly populist must clarify openly how he will eliminate conflicts of interest stemming from his corporate dealings before assuming the role of prime minister. The national charter “explicitly requires the head of state to take into account the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, the presidential administration explained. The head of state “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was ready to appoint Babiš as premier “immediately” once the matter was settled. Business Operations and Legal Concerns Babiš's several hundred companies, primarily under the Agrofert umbrella, operate in the Czech Republic and other regional countries, receiving millions of euros in domestic and European agricultural and other subsidies, as well as public contracts. Under national legislation, cabinet members cannot receiving state support or contracts. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline public contracts, or not enter government. Previous Term and Present Plans Babiš affirmed he would “follow the laws” if selected as prime minister, but did not want to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will always criticise me regardless”. During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several court cases and an European inquiry over possible conflicts of interest. He placed his holdings into trust funds, while retaining certain control over them. A judicial body and the European Commission both determined that this was insufficient. Babiš stated recently that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to reveal details. Coalition Deal and Foreign Policy Implications The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a referendum 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 strengthen the populist bloc in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support. Pavel, who as president shares responsibility for international relations, also demanded that the government agenda include a statement on the government’s position on Russia’s war in Ukraine, with a commitment to meeting alliance duties. The head of state has previously said he would not endorse any cabinet candidates who might question the nation's international alliances, a condition that the far-right SPD has said it will satisfy by proposing non-partisan experts.