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Andrej Babiš, the self-styled tycoon that won last month's Czech election, has declined to offload his extensive business interests, while asserting he will resolve a conflict of interest that could block him from taking the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn vote but did not secure a parliamentary majority, declared in a online statement that he will not divest his Agrofert group, which operates in agriculture, food production, and chemicals.

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

President's Demand

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will remove ethical conflicts 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 conflict of interest and the possibilities for its resolution” when selecting cabinet members, Pavel's office explained.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was ready to appoint Babiš as premier “without delay” once the issue was settled.

Corporate Activities and Legal Concerns

Babiš's numerous firms, mostly under the Agrofert group, function in the nation and other central European states, benefiting from substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, cabinet members cannot obtaining public aid or contracts. The ethics organization Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse public contracts, or not enter government.

Past Term and Present Intentions

Babiš said he would “follow the regulations” if appointed as prime minister, but declined to explain how in advance because the matter was “an extremely sensitive and personal matter for me, and journalists will always 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 conflicts of interest. He temporarily moved his assets into trust funds, while keeping some influence over them.

A court and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to disclose details.

Governing Agreement and Foreign Policy Implications

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The new government, if confirmed, is likely to bolster the populist movement in central and eastern Europe and could strain western support for Ukraine – even though Babiš has called Ukraine’s president, 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 declaration on the official stance on Russia’s war in Ukraine, with a pledge to meeting Nato obligations.

The president has earlier stated he would not endorse any cabinet candidates who might question the Czech Republic’s international alliances, a condition that the ultra-conservative party has said it will satisfy by nominating non-partisan experts.