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Andrej Babiš, the self-proclaimed tycoon who won the recent parliamentary vote, has refused to sell his extensive business interests, while asserting he will address a conflict of interest that could prevent him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the October vote but did not secure a majority in parliament, stated in a social media post that he would not divest his Agrofert conglomerate, which is active in farming, food production, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with Czech and European laws,” Babiš commented. “This is different from selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the elderly populist must clarify openly how he will remove ethical conflicts stemming from his corporate dealings before assuming the role of prime minister.

The national charter “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, the presidential administration noted.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was ready to designate Babiš as prime minister “without delay” once the issue was settled.

Business Operations and Legal Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the Czech Republic and other regional states, receiving substantial funds in domestic and European agricultural and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot receiving public aid or agreements. The ethics organization Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, refuse public contracts, or stay out of government.

Previous Term and Current Plans

Babiš affirmed he would “abide by the regulations” if selected as prime minister, but did not want to explain how in beforehand because the matter was “an highly personal and personal matter for me, and the media will invariably criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.

A court and the European Commission both ruled that this did not suffice. Babiš stated last month that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but refused to reveal details.

Coalition Agreement and International Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if confirmed, is likely to bolster the populist bloc in the region and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for foreign policy, also requested that the coalition’s programme include a statement on the official stance on the conflict in Ukraine, including a pledge to meeting Nato obligations.

The head of state has earlier stated he would not approve any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by nominating non-partisan experts.