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

Stance on Corporate Empire

Babiš, whose ANO party came first in the October election but did not secure a majority in parliament, declared in a online statement that he would not divest his Agrofert conglomerate, which is active in farming, food production, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly said I will address the conflict of interest in accordance with Czech and EU regulations,” the billionaire remarked. “This is not like selling a roll in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the elderly populist must clarify openly how he will eliminate ethical conflicts stemming from his business activities before being appointed premier.

The Czech constitution “explicitly requires the head of state to consider the possible emergence of a ethical issue and the possibilities for its resolution” 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 statement added, stating that Pavel was ready to appoint Babiš as premier “immediately” once the issue was resolved.

Business Operations and Legal Issues

Babiš's several hundred firms, 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 grants, as well as government deals.

Under national legislation, government ministers cannot obtaining state support or agreements. The anti-corruption organization Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or stay out of government.

Previous Term and Present Plans

Babiš affirmed he would “follow the regulations” if appointed as premier, but did not want to explain how in advance because the matter was “an highly personal and private affair for me, and the media will always question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping certain control over them.

A court and the European Commission both determined that this did not suffice. Babiš stated recently that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to reveal details.

Coalition Agreement and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the far-right, 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 – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state 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, including a pledge to meeting alliance duties.

The head of state has earlier stated he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the far-right SPD has indicated it will meet by proposing independent technocrats.