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Andrej Babiš, the self-styled tycoon who won last month's Czech election, has declined to offload his extensive corporate assets, while insisting he will resolve a conflict of interest that might block him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the October election but did not secure a parliamentary majority, declared in a social media post that he will not divest his Agrofert conglomerate, which operates in farming, food production, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have consistently stated I will address the ethical issue in compliance with Czech and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will eliminate ethical conflicts stemming from his corporate dealings before being appointed premier.

The Czech constitution “explicitly requires the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The president “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the announcement said, noting that Pavel was prepared to designate Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Legal Issues

Babiš's numerous companies, primarily under the Agrofert umbrella, function in the Czech Republic and other regional states, receiving millions of euros in national and EU agricultural and other subsidies, as well as public contracts.

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The anti-corruption watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline public contracts, or stay out of public office.

Previous Tenure and Current Plans

Babiš affirmed he would “follow the regulations” if appointed as prime minister, but did not want to explain how in advance because the matter was “an highly personal and personal matter for me, and journalists will invariably question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over potential ethical issues. He placed his holdings into fiduciary arrangements, while retaining some influence over them.

A judicial body 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 maintained he was “implementing measures” to prevent a ethical problem, but declined to disclose specifics.

Governing Agreement and International Consequences

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if approved, 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 leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for international relations, also demanded that the coalition’s programme add a statement on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling alliance duties.

The head of state has previously said he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by nominating non-partisan experts.