Prime Minister Babiš appears poised for a comeback, yet the president retains the power to veto.
Andrej Babiš, the favourite to win the Czech general election next month, faces a potential conflict of interest regarding his agricultural empire, Agrofert. This controversy, known as the "Stork's Nest" case, could legally prevent him from being appointed Prime Minister.
The case involves allegations that Babiš defrauded the EU of €2 million to receive subsidies for his Agrofert business empire. In 2019, a European Commission audit found that Babiš continued to exercise both "direct" and "indirect" influence over the trust funds managing Agrofert. Recent Czech court rulings have confirmed that Babiš had continued to control Agrofert while he was Prime Minister.
Babiš resumed ownership of Agrofert in December 2024 after placing the conglomerate into two trust funds back in 2017. The verdict on the "Stork's Nest" case will come after the election. If convicted, a criminal record may disqualify him from holding high public office.
President Petr Pavel has the constitutional option to not appoint Babiš as prime minister if he wins the election. Pavel is consulting lawyers on the question of whether to block Babiš from becoming prime minister, and has signaled that he would have to consider strategic questions when making his decision, including the geopolitical stance of potential coalition partners. Pavel has stated that he wouldn't appoint ministers who advocate Czechia's withdrawal from NATO or the EU.
The core discussion comes down to the potential conflict of interest posed by Agrofert. Babiš has stated that he will comply with all the requirements set by Czech laws if he were to become prime minister. However, he has not shared details about his plan for avoiding conflicts of interest, but has mentioned the possibility of giving up subsidies received by Agrofert.
If Babiš doesn't become prime minister, the role would probably fall to either Karel Havliček or Alena Schillerová, the two most prominent politicians in ANO. Tomaš Zdechovský, a center-right European parliamentarian, believes barring Babiš would send a clear message that conflicts of interest are being taken seriously in the Czech Republic. Jan Kysela, a constitutional expert, agrees, stating that a presidential refusal to appoint a prime minister over a conflict of interest would be in line with the Czech constitution.
Presidential blocks on appointees are not unheard of in the Czech Republic. In the past, presidents have refused to appoint ministers due to conflicts of interest or political disagreements. The question now is whether President Pavel will follow suit and block Babiš from becoming prime minister, setting a precedent for future elections.
The election next month promises to be a significant event in Czech politics, with the potential for a new prime minister and a renewed focus on conflicts of interest. The outcome will likely shape the future of Czechia's political landscape and its relationship with the EU and NATO.
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