🔗 Share this article Czech Billionaire Takes Prime Ministerial Post, Vowing to Sever Commercial Interests Andrej Babis's government represents a distinct shift compared to its strongly pro-Ukrainian forerunner. Wealthy businessman Andrej Babis has been sworn in as the nation's new prime minister, with his full cabinet anticipated to assume their roles in the coming days. His confirmation followed a key demand from President Petr Pavel – a formal assurance by Babis to relinquish control over his extensive food-processing, agriculture and chemicals holding company, Agrofert. "I commit to be a prime minister who upholds the interests of every citizen, at home and abroad," affirmed Babis following the ceremony at Prague Castle. "A leader who will work to establish the Czech Republic the top destination to live on the entire planet." High Aspirations and a Pervasive Business Presence These are lofty ambitions, but Babis, 71, is familiar with large-scale thinking. Agrofert is so deeply embedded in the Czech business landscape that there is even a specialized application to help shoppers steer clear of purchasing products made by the group's over two hundred subsidiaries. If a product – for example, frankfurters from Kostelecké uzeniny or packaged bread from Penam – is part of an Agrofert company, a warning symbol shows up. Babis, who previously served as prime minister for four years until 2021, has adopted more right-leaning positions in recent years and his cabinet will include members of the right-wing SPD party and the EU-skeptical "Motorists for Themselves" party. The Promise of Separation If he honors his promise to separate himself from the company he built from scratch, he will stop gaining from the sale of any Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he states he will have no insight of the conglomerate's fiscal condition, nor any ability to affect its fortunes. Administrative decisions on government procurement or subsidies – whether Czech or European – will be made without regard to a company he will have relinquished ownership of or profit from, he emphasizes. Instead, he explains that Agrofert, worth an estimated $4.3bn (£3.3bn), will be placed in a fiduciary structure managed by an third-party manager, where it will stay until his death. Then, it will pass to his children. This arrangement, he stated in a online address, went "exceeded" the demands of Czech law. Clarification Needed The specific type of trust remains unclear – a Czech trust, or one established overseas? The concept of a "fully independent trust" has no basis in Czech statutory law, and an army of lawyers will be required to design an structure that is legally sound. Doubts from Observers Critics, including Transparency International, continue to doubt. "Such a trust is not a solution," argued David Kotora, the head of Transparency International's Czech branch, in an comment. "The divide is insufficient. He undoubtedly is acquainted with the managers. He knows Agrofert's holdings. From an executive position, even at a EU level, he could possibly act in matters that would impact the industry in which Agrofert is active," Kotora warned. Extensive Influence Extending Past Agrofert But it's not just food – and it's not just Agrofert. In the eastern suburbs of Prague, a private health clinic towers over the O2 arena. While it is owned by a company called FutureLife a.s, that company is majority-owned by Hartenberg Holding, and Hartenberg Holding is, in turn, controlled by Babis. Hartenberg also manages a network of reproductive clinics, as well as a flower shop network, Flamengo, and an underwear retailer, Astratex. The influence of Babis into all corners of Czech life is wide. And as prime minister, for the second time, it is set to grow broader.
Andrej Babis's government represents a distinct shift compared to its strongly pro-Ukrainian forerunner. Wealthy businessman Andrej Babis has been sworn in as the nation's new prime minister, with his full cabinet anticipated to assume their roles in the coming days. His confirmation followed a key demand from President Petr Pavel – a formal assurance by Babis to relinquish control over his extensive food-processing, agriculture and chemicals holding company, Agrofert. "I commit to be a prime minister who upholds the interests of every citizen, at home and abroad," affirmed Babis following the ceremony at Prague Castle. "A leader who will work to establish the Czech Republic the top destination to live on the entire planet." High Aspirations and a Pervasive Business Presence These are lofty ambitions, but Babis, 71, is familiar with large-scale thinking. Agrofert is so deeply embedded in the Czech business landscape that there is even a specialized application to help shoppers steer clear of purchasing products made by the group's over two hundred subsidiaries. If a product – for example, frankfurters from Kostelecké uzeniny or packaged bread from Penam – is part of an Agrofert company, a warning symbol shows up. Babis, who previously served as prime minister for four years until 2021, has adopted more right-leaning positions in recent years and his cabinet will include members of the right-wing SPD party and the EU-skeptical "Motorists for Themselves" party. The Promise of Separation If he honors his promise to separate himself from the company he built from scratch, he will stop gaining from the sale of any Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he states he will have no insight of the conglomerate's fiscal condition, nor any ability to affect its fortunes. Administrative decisions on government procurement or subsidies – whether Czech or European – will be made without regard to a company he will have relinquished ownership of or profit from, he emphasizes. Instead, he explains that Agrofert, worth an estimated $4.3bn (£3.3bn), will be placed in a fiduciary structure managed by an third-party manager, where it will stay until his death. Then, it will pass to his children. This arrangement, he stated in a online address, went "exceeded" the demands of Czech law. Clarification Needed The specific type of trust remains unclear – a Czech trust, or one established overseas? The concept of a "fully independent trust" has no basis in Czech statutory law, and an army of lawyers will be required to design an structure that is legally sound. Doubts from Observers Critics, including Transparency International, continue to doubt. "Such a trust is not a solution," argued David Kotora, the head of Transparency International's Czech branch, in an comment. "The divide is insufficient. He undoubtedly is acquainted with the managers. He knows Agrofert's holdings. From an executive position, even at a EU level, he could possibly act in matters that would impact the industry in which Agrofert is active," Kotora warned. Extensive Influence Extending Past Agrofert But it's not just food – and it's not just Agrofert. In the eastern suburbs of Prague, a private health clinic towers over the O2 arena. While it is owned by a company called FutureLife a.s, that company is majority-owned by Hartenberg Holding, and Hartenberg Holding is, in turn, controlled by Babis. Hartenberg also manages a network of reproductive clinics, as well as a flower shop network, Flamengo, and an underwear retailer, Astratex. The influence of Babis into all corners of Czech life is wide. And as prime minister, for the second time, it is set to grow broader.