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Andrej Babiš, the self-styled tycoon that won the recent Czech election, has declined to sell his extensive corporate assets, while asserting he will address a conflict of interest that might prevent him from taking the position of head of government.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October vote but lacked a parliamentary majority, declared in a social media post that he would not divest his Agrofert group, which operates in farming, food processing, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have consistently stated I will address the conflict of interest in compliance with national and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly populist must clarify openly how he will eliminate conflicts of interest arising from his business activities before being appointed prime minister.

The national charter “explicitly requires the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when selecting cabinet members, the presidential administration noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was settled.

Business Operations and Legal Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, function in the nation and other regional countries, receiving millions of euros in national and EU agricultural and other grants, as well as government deals.

Under national legislation, government ministers cannot obtaining state support or contracts. The ethics organization Transparency International has stated that to avoid a ethical breach, Babiš must either sell, refuse government deals, or not enter government.

Previous Tenure and Current Intentions

Babiš said he would “abide by the laws” if appointed as premier, but declined to explain how in advance because the matter was “an extremely sensitive and private affair for me, and the media will always question me regardless”.

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

A court and the European Commission both ruled that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but refused to reveal specifics.

Governing Agreement and International Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if confirmed, is likely to bolster the populist bloc in the region and could strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for international relations, also demanded that the coalition’s programme include a declaration on the government’s position on Russia’s war in Ukraine, including a commitment to meeting Nato obligations.

The president has previously said he would not endorse any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has said it will satisfy by nominating independent technocrats.