🔗 Share this article Czech Republic's Populist Prime Minister-Elect Declines to Divest Corporate Holdings During Ethical Dispute Andrej Babiš, the self-proclaimed billionaire that won the recent Czech election, has declined to sell his extensive corporate assets, while asserting he will resolve a ethical dilemma that could prevent him from taking the role of head of government. Stance on Corporate Empire Babiš, whose ANO party came first in the autumn vote but lacked a majority in parliament, declared in a online statement that he would not divest his Agrofert group, which operates in farming, food production, and chemicals. “I have consistently said I will never sell Agrofert. I have consistently said I will address the conflict of interest in compliance with national and EU regulations,” the billionaire remarked. “This is different from selling a pastry in a bakery.” President's Requirement The head of state, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will remove ethical conflicts stemming from his corporate dealings before being appointed prime minister. The national charter “explicitly requires the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration noted. The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved. Corporate Activities and Legal Concerns Babiš's several hundred firms, mostly under the Agrofert umbrella, function in the nation and other central European countries, receiving substantial funds in domestic and European farming and other subsidies, as well as government deals. Under national legislation, government ministers cannot receiving public aid or agreements. The ethics organization Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, refuse government deals, or stay out of government. Past Term and Current Intentions Babiš affirmed he would “follow the regulations” if appointed as prime minister, but declined to explain how in advance because the matter was “an extremely sensitive and private affair for me, and journalists will always criticise me regardless”. During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over possible conflicts of interest. He placed his holdings into fiduciary arrangements, while retaining some influence over them. A judicial body and the EU executive both determined that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but refused to disclose specifics. Coalition Deal and International Consequences The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy. The incoming administration, if approved, is expected to strengthen the populist bloc in the region and could challenge western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing. Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme include a declaration on the government’s position on Russia’s war in Ukraine, including a commitment to meeting Nato obligations. The head of state has previously stated he would not endorse any ministerial nominees who might question the Czech Republic’s international alliances, a requirement that the far-right SPD has indicated it will meet by proposing non-partisan experts.