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Andrej Babiš, the self-styled tycoon that secured victory in the recent Czech election, has refused to sell his vast business interests, while insisting he will address a conflict of interest that might prevent him from assuming the position of head of government.

Stance on Business Holdings

Babiš, whose political movement came first in the autumn election but did not secure a parliamentary majority, declared in a online statement that he would not divest his Agrofert conglomerate, which is active in farming, food processing, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with Czech and EU regulations,” the billionaire remarked. “This is not like selling a pastry in a bakeshop.”

President's Demand

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

The national charter “clearly mandates the head of state to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, the presidential administration explained.

The head of state “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was ready to appoint Babiš as prime minister “without delay” once the matter was resolved.

Corporate Activities and Legal Issues

Babiš's numerous firms, mostly under the Agrofert group, operate in the Czech Republic and other regional countries, receiving substantial funds in domestic and European agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members are barred from obtaining public aid or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, refuse public contracts, or stay out of government.

Past Tenure and Present Plans

Babiš said he would “abide by the regulations” if selected as prime minister, but did not want to explain how in advance because the matter was “an extremely sensitive and personal matter for me, and the media will always question me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over potential conflicts of interest. He placed his holdings into fiduciary arrangements, while retaining certain control over them.

A judicial body and the European Commission both ruled that this was insufficient. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but declined to disclose details.

Coalition Deal and Foreign Policy Consequences

The wealthy politician has signed a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a referendum 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 bolster the populist movement in the region and might challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the government agenda add a statement on the government’s position on the conflict in Ukraine, including a commitment to fulfilling alliance duties.

The president has previously said he would not endorse 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 independent technocrats.