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Andrej Babiš, the self-proclaimed tycoon who secured victory in last month's 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 role of head of government.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the October vote but did not secure a parliamentary majority, declared in a social media post that he will not divest his Agrofert conglomerate, which operates in farming, food production, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in compliance with Czech and European laws,” Babiš commented. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will eliminate conflicts of interest arising from his business activities before being appointed prime minister.

The Czech constitution “clearly mandates the head of state to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement said, stating that Pavel was ready to designate Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Regulatory Issues

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

Under national legislation, government ministers cannot obtaining public aid or agreements. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, refuse government deals, or not enter public office.

Previous Term and Current Plans

Babiš said he would “follow the laws” if selected as prime minister, but did not want to detail how in advance because the matter was “an extremely sensitive and private affair for me, and the media will always criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential conflicts of interest. He placed his holdings into trust funds, while retaining some influence over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš stated recently that he was again the sole owner of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but declined to reveal details.

Governing Deal and International Implications

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The incoming administration, if approved, is expected to bolster the populist movement in the region and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for international relations, also requested that the coalition’s programme include a declaration on the government’s position 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 doubt the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has indicated it will satisfy by nominating independent technocrats.