Czech billionaire Andrej Babis has officially assumed the role of prime minister for the second time, marking a significant political shift in Central Europe. The 71-year-old business magnate received presidential appointment after committing to sever ties with his sprawling commercial empire, Agrofert, valued at approximately $4.3 billion.
President Petr Pavel mandated Babis’s public pledge to relinquish control over his vast conglomerate—spanning food processing, agriculture, and chemical industries—as a precondition for forming the new government. The complete cabinet, featuring members from the far-right SPD party and Eurosceptic ‘Motorists for Themselves’ movement, is anticipated to be sworn in within days.
During the ceremonial proceedings at Prague Castle, Babis proclaimed his dedication to representing all Czech citizens both domestically and internationally. ‘I will endeavor to transform the Czech Republic into the planet’s premier place to reside,’ he declared, outlining his ambitious governance vision.
The business tycoon’s commercial influence permeates Czech daily life through Agrofert’s 200+ subsidiaries, producing everything from Viennese-style sausages (Kostelecké uzeniny) to sliced bread (Penam). So pervasive is this commercial presence that activists have developed smartphone applications enabling consumers to identify and boycott Agrofert products.
Babis asserts that his business holdings will be transferred to a trust managed by an independent administrator until his death, after which ownership will pass to his heirs. This arrangement, he emphasized in a Facebook video presentation, substantially exceeds Czech legal requirements. However, the specific trust mechanism remains undefined, particularly since Czech legislation lacks provisions for ‘blind trusts,’ necessitating complex legal structuring.
Transparency International’s Czech chapter remains skeptical regarding the effectiveness of these measures. David Kotora, director of the organization’s local branch, cautioned that mere ownership transfer cannot eliminate potential conflicts of interest. ‘There exists no genuine separation. Babis maintains personal relationships with managers and possesses intimate knowledge of Agrofert’s portfolio. From his executive governmental position, he could theoretically influence sector-specific matters affecting his former enterprise,’ Kotora explained to Seznam Zpravy.
The business network extends beyond Agrofert to include Hartenberg Holding, which controls numerous enterprises including FutureLife a.s (operating premium health clinics), reproductive clinics, Flamengo florist chain, and Astratex underwear retailer. This expansive commercial footprint throughout Czech society, combined with Babis’s renewed political authority, signals profound changes in the nation’s governance direction.