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

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but lacked a parliamentary majority, stated in a social media post that he will not divest his Agrofert conglomerate, which is active in farming, food processing, and chemicals.

“I have consistently said I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in compliance with national and European laws,” Babiš commented. “This is different from selling a roll in a bakeshop.”

President's Requirement

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

The Czech constitution “clearly mandates the president to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, the presidential administration noted.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, noting that Pavel was ready to designate Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert group, function in the Czech Republic and other regional states, receiving millions of euros in domestic and European farming and other subsidies, as well as government deals.

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The ethics organization Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, refuse public contracts, or not enter public office.

Past Tenure and Current Plans

Babiš said he would “abide by the regulations” if appointed as prime minister, but declined to detail how in advance because the matter was “an extremely sensitive and private affair for me, and journalists will invariably criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over potential ethical issues. He temporarily moved his holdings into trust funds, while retaining some influence over them.

A court and the EU executive both ruled that this did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but refused to disclose details.

Coalition Deal and Foreign Policy Implications

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if confirmed, is expected to bolster the populist movement in central and eastern Europe and might challenge western support for Ukraine – although 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 requested that the government agenda include a declaration on the government’s position on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

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