🔗 Share this article Czech Populist PM-Elect Declines to Sell Business Empire During Ethical Row Andrej Babiš, the self-proclaimed billionaire who won last month's Czech election, has refused to offload his extensive business interests, while insisting he will resolve a ethical dilemma that could block him from taking the position of prime minister. Position on Business Holdings Babiš, whose political movement came first in the October election but lacked a majority in parliament, stated in a online statement that he will not divest his Agrofert group, which operates in farming, food production, and chemicals. “I have repeatedly stated I will not sell Agrofert. I have repeatedly said I will resolve the conflict of interest in accordance with national and EU regulations,” the billionaire commented. “This is different from selling a pastry in a bakeshop.” President's Requirement The Czech president, Petr Pavel, stated that the elderly political figure must publicly explain how he will remove conflicts of interest stemming from his corporate dealings before being appointed premier. The national charter “clearly mandates the president to consider the possible emergence of a conflict of interest and the ways to address it” when selecting government ministers, the presidential administration explained. The head of state “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, stating that Pavel was prepared to designate Babiš as premier “immediately” once the matter was resolved. Business Operations and Regulatory Issues Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional states, receiving substantial funds in national and EU agricultural and other subsidies, as well as government deals. Under national legislation, cabinet members cannot receiving state support or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse public contracts, or not enter public office. Previous Tenure and Present Intentions Babiš said he would “abide by the regulations” if selected as prime minister, but declined to explain how in beforehand because the matter was “an extremely sensitive and private affair for me, and the media will always question me anyway”. During his initial tenure as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible ethical issues. He placed his assets into trust funds, while retaining certain control over them. A court and the European Commission both determined that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but refused to disclose details. Coalition Agreement and Foreign Policy Implications The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, 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 approved, is expected to bolster the populist movement in the region and could challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing. Pavel, who as head of state shares responsibility for international relations, also demanded that the coalition’s programme add a declaration on the official stance on the conflict in Ukraine, with a pledge to meeting alliance duties. The president has earlier stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s international alliances, a condition that the far-right SPD has indicated it will meet by nominating independent technocrats.