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Andrej Babiš, the self-styled tycoon who won the recent Czech election, has refused to sell his vast corporate assets, while insisting he will resolve a conflict of interest that might block him from assuming the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party came first in the autumn election but did not secure a parliamentary majority, stated in a social media post that he will not divest his Agrofert conglomerate, which operates in agriculture, 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 accordance with national and EU regulations,” Babiš commented. “This is different from selling a pastry in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will eliminate conflicts of interest stemming from his business activities before assuming the role of premier.

The national charter “clearly mandates the president to take into account the potential occurrence of a ethical issue and the ways to address it” when selecting cabinet members, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement said, stating that Pavel was ready to appoint Babiš as prime minister “immediately” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the nation and other regional states, receiving millions of euros in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, government ministers are barred from obtaining state support or agreements. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline government deals, or not enter government.

Past Tenure and Present Intentions

Babiš affirmed he would “follow the regulations” if appointed as premier, but declined to detail how in beforehand because the issue was “an extremely sensitive and personal matter for me, and journalists will invariably question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over possible conflicts of interest. He temporarily moved his holdings into trust funds, while keeping certain control over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš confirmed recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but declined to reveal details.

Coalition Deal and International Implications

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to bolster the populist bloc in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda include a declaration on the government’s position on Russia’s war in Ukraine, including a pledge to fulfilling alliance duties.

The head of state has earlier stated he would not endorse any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will satisfy by proposing non-partisan experts.