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Andrej Babiš, the self-styled tycoon that won the recent parliamentary vote, has refused to sell his extensive business interests, while insisting he will resolve a conflict of interest that might block him from taking the role of head of government.

Stance on Business Holdings

Babiš, whose ANO party came first in the autumn vote but lacked a majority in parliament, declared in a online statement that he would not divest his Agrofert conglomerate, which is active in agriculture, food production, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly said I will address the ethical issue in accordance with national and European laws,” the billionaire remarked. “This is not like selling a roll in a bakery.”

President's Demand

The head of state, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will eliminate conflicts of interest arising from his corporate dealings before assuming the role of premier.

The national charter “clearly mandates the president to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration noted.

The president “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 issue was settled.

Corporate Activities and Legal Concerns

Babiš's numerous firms, primarily under the Agrofert group, operate in the Czech Republic and other central European countries, benefiting from substantial funds in domestic and European farming and other subsidies, as well as government deals.

Under national legislation, government ministers cannot obtaining state support or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or not enter government.

Past Term and Current Intentions

Babiš affirmed he would “abide by the regulations” if appointed as prime minister, but did not want to explain how in advance because the matter was “an highly personal and private affair for me, and journalists will always question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over possible conflicts of interest. He placed his holdings into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to disclose specifics.

Coalition Agreement and Foreign Policy Implications

The wealthy politician has signed a coalition agreement 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 mainly campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to strengthen the populist bloc in the region and might challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for international relations, also demanded that the coalition’s programme include a statement on the government’s position on Russia’s war in Ukraine, with a commitment to meeting alliance duties.

The head of state has earlier said he would not approve any ministerial nominees who might doubt the Czech Republic’s international alliances, a condition that the ultra-conservative party has said it will satisfy by nominating independent technocrats.