🔗 Share this article A Czech Wealthy Magnate Assumes Prime Ministerial Post, Promising to Sever Commercial Holdings The incoming government will be a clear departure from its strongly pro-Ukrainian predecessor. Entrepreneur Andrej Babis has been sworn in as the Czech Republic's new head of government, with his government slated to take their posts shortly. His confirmation followed a key demand from President Petr Pavel – a official commitment by Babis to cede command over his extensive agribusiness and chemical group, Agrofert. "I promise to be a prime minister who defends the interests of the entire populace, at home and abroad," affirmed Babis following the swearing-in at Prague Castle. "A leader who will work to make the Czech Republic the finest location to live on the entire planet." Grand Visions and a Vast Corporate Footprint These are grandiose goals, but Babis, 71, is used to ambitious plans. Agrofert is so firmly entrenched in the Czech economic fabric that there is even a dedicated app to help shoppers avoid purchasing products made by the group's over two hundred subsidiaries. If a product – for example, Viennese-style sausages from Kostelecké uzeniny or packaged bread from Penam – falls under an Agrofert company, a thumbs-down symbol is displayed. Babis, who was formerly prime minister for four years until 2021, has moved rightward in recent years and his cabinet will include members of the right-wing SPD party and the Eurosceptic "Motorists for Themselves" party. The Commitment of Separation If he fulfills his vow to withdraw from the company he established, he will no longer benefit from the sale of a single Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he states he will have no insight of the conglomerate's financial health, nor any ability to affect its performance. State decisions on state contracts or subsidies – whether national or EU-funded – will be made independently of a company he will no longer own or profit from, he emphasizes. Instead, he explains that Agrofert, valued at $4.3bn (£3.3bn), will be placed in a trust managed by an third-party manager, where it will stay until his death. Upon that event, it will transfer to his children. This arrangement, he commented in a online address, went "far beyond" the requirements of Czech law. Unanswered Questions What kind of trust is still uncertain – a Czech trust, or one in a foreign jurisdiction? The concept of a "blind trust" does not exist in Czech statutory law, and an battalion of attorneys will be necessary to devise an solution that is functional. Doubts from Watchdogs Skeptics, including Transparency International, are still skeptical. "A blind trust is not a solution," argued David Kotora, the head of Transparency International's Czech branch, in an comment. "True separation is absent. [Babis] is familiar with the managers. He knows Agrofert's holdings. From an position of power, even at a European level, he could possibly act in matters that would impact the sector in which Agrofert operates," Kotora cautioned. Extensive Influence Extending Past Agrofert But it's not only food – and it's not just Agrofert. In the eastern suburbs of Prague, a medical facility towers over the O2 arena. While it is owned by a company called FutureLife a.s, that company is controlled by Hartenberg Holding, and Hartenberg Holding is, in turn, controlled by Babis. Hartenberg also manages a network of fertility centers, as well as a florist chain, Flamengo, and an lingerie store chain, Astratex. The reach of Babis into every facet of Czech life is extensive. And as prime minister, for the second occasion, it is poised to become even wider.
The incoming government will be a clear departure from its strongly pro-Ukrainian predecessor. Entrepreneur Andrej Babis has been sworn in as the Czech Republic's new head of government, with his government slated to take their posts shortly. His confirmation followed a key demand from President Petr Pavel – a official commitment by Babis to cede command over his extensive agribusiness and chemical group, Agrofert. "I promise to be a prime minister who defends the interests of the entire populace, at home and abroad," affirmed Babis following the swearing-in at Prague Castle. "A leader who will work to make the Czech Republic the finest location to live on the entire planet." Grand Visions and a Vast Corporate Footprint These are grandiose goals, but Babis, 71, is used to ambitious plans. Agrofert is so firmly entrenched in the Czech economic fabric that there is even a dedicated app to help shoppers avoid purchasing products made by the group's over two hundred subsidiaries. If a product – for example, Viennese-style sausages from Kostelecké uzeniny or packaged bread from Penam – falls under an Agrofert company, a thumbs-down symbol is displayed. Babis, who was formerly prime minister for four years until 2021, has moved rightward in recent years and his cabinet will include members of the right-wing SPD party and the Eurosceptic "Motorists for Themselves" party. The Commitment of Separation If he fulfills his vow to withdraw from the company he established, he will no longer benefit from the sale of a single Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he states he will have no insight of the conglomerate's financial health, nor any ability to affect its performance. State decisions on state contracts or subsidies – whether national or EU-funded – will be made independently of a company he will no longer own or profit from, he emphasizes. Instead, he explains that Agrofert, valued at $4.3bn (£3.3bn), will be placed in a trust managed by an third-party manager, where it will stay until his death. Upon that event, it will transfer to his children. This arrangement, he commented in a online address, went "far beyond" the requirements of Czech law. Unanswered Questions What kind of trust is still uncertain – a Czech trust, or one in a foreign jurisdiction? The concept of a "blind trust" does not exist in Czech statutory law, and an battalion of attorneys will be necessary to devise an solution that is functional. Doubts from Watchdogs Skeptics, including Transparency International, are still skeptical. "A blind trust is not a solution," argued David Kotora, the head of Transparency International's Czech branch, in an comment. "True separation is absent. [Babis] is familiar with the managers. He knows Agrofert's holdings. From an position of power, even at a European level, he could possibly act in matters that would impact the sector in which Agrofert operates," Kotora cautioned. Extensive Influence Extending Past Agrofert But it's not only food – and it's not just Agrofert. In the eastern suburbs of Prague, a medical facility towers over the O2 arena. While it is owned by a company called FutureLife a.s, that company is controlled by Hartenberg Holding, and Hartenberg Holding is, in turn, controlled by Babis. Hartenberg also manages a network of fertility centers, as well as a florist chain, Flamengo, and an lingerie store chain, Astratex. The reach of Babis into every facet of Czech life is extensive. And as prime minister, for the second occasion, it is poised to become even wider.