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Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent Czech election, has refused to offload his vast corporate assets, while asserting he will resolve a conflict of interest that could prevent him from assuming the role of head of government.

Stance on Business Holdings

Babiš, whose political movement came first in the October election but lacked a majority in parliament, declared in a social media post that he would not sell his Agrofert group, which is active in agriculture, food production, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly said I will address the ethical issue in compliance with Czech and EU regulations,” Babiš commented. “This is different from selling a roll in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will remove conflicts of interest stemming from his corporate dealings before being appointed prime minister.

The Czech constitution “explicitly requires the head of state to consider the potential occurrence of a conflict of interest and the ways to address it” when appointing cabinet members, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was ready to designate Babiš as prime minister “without delay” once the issue was settled.

Corporate Activities and Legal Issues

Babiš's several hundred companies, primarily under the Agrofert umbrella, function in the nation and other central European countries, benefiting from substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under Czech law, government ministers cannot obtaining public aid or contracts. The ethics organization Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, decline government deals, or stay out of public office.

Past Tenure and Current Intentions

Babiš affirmed he would “follow the laws” if selected as premier, but declined to detail how in advance because the matter was “an extremely sensitive and personal matter for me, and journalists will always criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over possible ethical issues. He temporarily moved his holdings into trust funds, while keeping certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš stated last month that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but declined to disclose details.

Coalition Agreement and International Implications

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if confirmed, is expected to strengthen the populist bloc in the region and could challenge western support for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for international relations, also requested that the government agenda add a declaration on the official stance on the conflict in Ukraine, with a commitment to meeting alliance duties.

The president has earlier said he would not endorse any ministerial nominees who might doubt the Czech Republic’s international alliances, a requirement that the ultra-conservative party has indicated it will meet by nominating independent technocrats.