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Andrej Babiš, the self-proclaimed tycoon who won the recent Czech election, has declined to offload his vast business interests, while asserting he will address a conflict of interest that could block him from assuming the role of head of government.

Position on Corporate Empire

Babiš, whose ANO party came first in the autumn election but did not secure a parliamentary majority, stated in a online statement that he will not sell his Agrofert group, which operates in farming, food processing, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will resolve the ethical issue in compliance with national and European laws,” the billionaire commented. “This is not like selling a roll in a bakeshop.”

Head of State's Demand

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

The national charter “explicitly requires the president to consider the potential occurrence of a conflict of interest and the ways to address it” when appointing government ministers, Pavel's office noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement said, noting that Pavel was ready to appoint Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert group, operate in the Czech Republic and other central European states, benefiting from substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, government ministers are barred from receiving public aid or contracts. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or stay out of government.

Previous Term and Present Plans

Babiš said he would “abide by the regulations” if appointed as prime minister, but declined to detail how in advance because the issue was “an highly personal and personal matter for me, and journalists will invariably question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over possible ethical issues. He placed his assets into fiduciary arrangements, while retaining certain control over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but refused to disclose specifics.

Governing Deal and Foreign Policy Implications

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is likely to bolster the populist movement in the region and might strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for foreign policy, also demanded that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, with a commitment to fulfilling alliance duties.

The head of state has earlier stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s international alliances, a requirement that the far-right SPD has indicated it will meet by proposing independent technocrats.