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

Andrej Babiš, the self-styled billionaire who secured victory in last month's Czech election, has refused to offload his vast corporate assets, while insisting he will resolve a ethical dilemma that could block him from assuming the role of head of government.

Stance on Business Holdings

Babiš, whose political movement 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 chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently stated I will address the conflict of interest in compliance with national and EU regulations,” the billionaire commented. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will eliminate ethical conflicts arising from his business activities before assuming the role of prime minister.

The national charter “clearly mandates the head of state to take into account the possible emergence of a ethical issue and the ways to address it” when appointing cabinet members, the presidential administration noted.

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 ready to appoint Babiš as premier “without delay” once the matter was resolved.

Business Operations and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert umbrella, operate in the Czech Republic and other central European states, receiving substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, cabinet members cannot obtaining public aid or agreements. The anti-corruption organization Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, decline government deals, or not enter government.

Past Term and Present Plans

Babiš affirmed he would “follow the laws” if appointed as prime minister, but declined to explain how in beforehand because the issue was “an highly personal 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 faced several legal battles and an EU investigation over potential ethical issues. He placed his holdings into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but declined to disclose details.

Coalition Deal and Foreign Policy Consequences

The wealthy politician has concluded 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 Green Deal.

The incoming administration, if confirmed, is expected to strengthen the populist movement in the region and could challenge western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state has a role for international relations, also demanded that the government agenda include a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.

The president has previously said he would not endorse any cabinet candidates who might doubt the nation's international alliances, a requirement that the ultra-conservative party has indicated it will meet by nominating independent technocrats.