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Andrej Babiš, the self-styled tycoon who won last month's Czech election, has refused to sell his extensive business interests, while insisting he will resolve a conflict of interest that could block him from assuming the role of head of government.

Stance on Corporate Empire

Babiš, whose political movement came first in the autumn vote but lacked a parliamentary majority, declared in a online statement that he will not divest his Agrofert group, which is active in farming, food production, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with national and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

President's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts stemming from his business activities before being appointed premier.

The Czech constitution “clearly mandates the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, Pavel's office explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Legal Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, operate in the nation and other central European countries, receiving millions of euros in national and EU agricultural and other subsidies, as well as government deals.

Under national legislation, government ministers are barred from obtaining public aid or agreements. The ethics organization Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or stay out of government.

Past Term and Present Intentions

Babiš affirmed he would “abide by the regulations” if appointed as premier, but declined to explain how in advance because the issue was “an extremely sensitive and private affair for me, and the media will invariably criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over potential ethical issues. He placed his holdings into trust funds, while keeping certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but refused to reveal specifics.

Governing Deal and Foreign Policy Consequences

The wealthy politician has signed a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if confirmed, is expected to strengthen the populist bloc in the region and might strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme add a statement on the official stance on Russia’s war in Ukraine, with a commitment to fulfilling alliance duties.

The president has previously said he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a condition that the ultra-conservative party has said it will satisfy by nominating independent technocrats.