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Andrej Babiš, the self-proclaimed tycoon who secured victory in the recent Czech election, has refused to sell his extensive corporate assets, while insisting he will address a conflict of interest that might prevent him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose ANO party came first in the October vote but did not secure a parliamentary majority, stated in a online statement that he will not divest his Agrofert group, which operates in farming, food processing, and chemicals.

“I have consistently said I will never sell Agrofert. I have consistently stated I will address the ethical issue in compliance with national and EU regulations,” the billionaire remarked. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will remove conflicts of interest stemming from his corporate dealings before being appointed premier.

The national charter “explicitly requires the president to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, the presidential administration explained.

The head of state “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the statement added, stating that Pavel was ready to appoint Babiš as prime minister “immediately” once the matter was resolved.

Business Operations and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert group, operate in the Czech Republic and other regional countries, benefiting from millions of euros in domestic and European farming and other subsidies, as well as government deals.

Under national legislation, cabinet members are barred from obtaining public aid or contracts. The ethics organization Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, refuse public contracts, or not enter government.

Previous Tenure and Current Intentions

Babiš said he would “follow the laws” if appointed as prime minister, but did not want to explain how in advance because the issue was “an highly personal and personal matter for me, and journalists will always question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several court cases and an European inquiry over potential ethical issues. He placed his assets into trust funds, while keeping some influence over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but refused to disclose details.

Coalition Deal and Foreign Policy Consequences

The billionaire populist has signed a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The new government, if approved, is likely to bolster the populist bloc in the region and might strain western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the government agenda include a declaration on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has earlier stated he would not approve any ministerial nominees who might doubt the Czech Republic’s international alliances, a requirement that the far-right SPD has said it will meet by proposing non-partisan experts.