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Andrej Babiš, the self-proclaimed tycoon who won the recent Czech election, has refused to sell his extensive business interests, while insisting he will resolve a conflict of interest that might prevent him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but did not secure a majority in parliament, stated in a social media post that he will not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have consistently stated I will address the conflict of interest in accordance with Czech and EU regulations,” the billionaire commented. “This is not like selling a roll in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will eliminate conflicts of interest stemming from his corporate dealings before assuming the role of prime minister.

The Czech constitution “clearly mandates the head of state to consider the potential occurrence of a conflict of interest and the ways to address it” when appointing government ministers, 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 announcement said, stating that Pavel was prepared to designate Babiš as premier “without delay” once the issue was resolved.

Business Operations and Legal Issues

Babiš's several hundred companies, primarily under the Agrofert group, operate in the nation and other central European states, benefiting from substantial funds in national and EU agricultural and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot receiving public aid or agreements. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, refuse government deals, or not enter government.

Past Tenure and Present Intentions

Babiš affirmed he would “abide by the laws” if appointed as prime minister, but did not want to detail how in beforehand because the issue was “an highly personal and personal matter for me, and journalists will invariably criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but refused to disclose details.

Coalition Deal and International Consequences

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to strengthen the populist bloc in central and eastern Europe and could strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the government agenda add a declaration on the government’s position on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

The president has earlier said he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has said it will satisfy by proposing non-partisan experts.