Czech billionaire Babiš will become PM after disposing of agri-business conflict
President Petr Pavel applauds the anti-establishment tycoon for resolving an issue with the Agrofert holding that had overshadowed the election aftermath.
Czech right-wing billionaire Andrej Babiš will be the new prime minister in Prague after announcing Thursday evening that he would dispose of a potential conflict of interest.
Babiš' ANO party won the Czech parliamentary election in October and formed a coalition with the far-right Freedom and Direct Democracy and right-wing Motorists for Themselves parties. But the proposed prime minister and coalition ministers must be green-lit by Czech President Petr Pavel before taking office.
Babiš has been entangled in legal woes, both at home and abroad, concerning his agriculture business empire Agrofert, which is a major recipient of EU subsidies.
"Of course, I could have left politics after winning the election and had a comfortable life, or ANO could have appointed someone else as prime minister," Babiš said Thursday night in a video address to voters.
"But I am convinced that you would perceive it as a betrayal," he added. "That is why I have decided to irrevocably give up the Agrofert company, with which I will no longer have anything to do, I will never own it, I will not have any economic relations with it, and I will not be in any contact with it."
Babiš' ascension to the Czech premiership further tilts Central Europe in an anti-establishment direction, as the populist tycoon joins Hungary's Viktor Orbán and Slovakia's Robert Fico as potential thorns in Brussels' side on key EU files.
In stepping back from Agrofert, however, Babiš made clear the importance of retaking the prime ministerial role. The holding's shares will now be managed through a trust structure by an independent administrator.
"This step, which goes far beyond the requirements of the law, was not easy for me. I have been building my company for almost half my life and I am very sorry that I will also have to step down as chairman of the Agrofert Foundation," Babiš said.
"My children will only get Agrofert after my death," he added.
In response, Pavel announced that he would appoint Babiš as prime minister on Dec. 9.
"I appreciate the clear and understandable manner in which Andrej Babiš has fulfilled our agreement and publicly announced how he will resolve his conflict of interest," Pavel said.
Pavel previously noted that strong pro-NATO and pro-EU stances, along with safeguarding the country’s democratic institutions, will be key factors in his decision-making regarding the proposed Cabinet.
Czech conflict of interest law bars officials (or their close relatives) from owning or controlling a business that would create a conflict with their governing function. This doesn’t mean ministers can’t own businesses, just that they must prioritize the public interest over their own. Similar rules exist at the EU level.
When he was prime minister the first time round, from 2017 to 2021, Babiš placed Agrofert — which consists of more than 250 companies — in trust funds, but the Czech courts as well as the European Commission in 2021 concluded that he still retained influence over them and was therefore in violation of EU conflict-of-interest rules.
