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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 resolve a conflict of interest that could prevent him from assuming the role of head of government.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but lacked a majority in parliament, stated in a online statement that he would not divest his Agrofert conglomerate, which is active in agriculture, food production, and chemicals.

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

President's Requirement

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

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, the presidential administration explained.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, stating that Pavel was prepared to designate Babiš as premier “without delay” once the matter was resolved.

Corporate Activities and Legal Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European states, receiving millions of euros in national and EU farming and other subsidies, as well as government deals.

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

Previous Term and Current Plans

Babiš said he would “abide by the regulations” if appointed as premier, but did not want to detail how in beforehand because the matter was “an extremely sensitive and personal matter for me, and the media will always criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping certain control over them.

A court and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but refused to disclose specifics.

Governing Deal and International Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian 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 incoming administration, if confirmed, is expected to bolster the populist movement in the region and could challenge western support for Ukraine – although Babiš has contacted Ukraine’s leader, 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 include a declaration on the government’s position on the conflict in Ukraine, with a commitment to fulfilling Nato obligations.

The president has earlier said he would not endorse 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 non-partisan experts.