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Andrej Babiš, the self-styled tycoon that won the recent Czech election, has refused to sell his vast business interests, while insisting he will address a conflict of interest that could block him from taking the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a majority in parliament, declared in a online statement that he will not divest his Agrofert conglomerate, which is active in farming, food processing, and chemicals.

“I have consistently stated I will never sell Agrofert. I have repeatedly said I will resolve the conflict of interest in accordance with national and European laws,” Babiš remarked. “This is not like selling a roll in a bakery.”

President's Requirement

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will eliminate conflicts of interest stemming from his business activities before being appointed prime minister.

The national charter “clearly mandates the president to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert group, operate in the nation and other central European states, receiving substantial funds in domestic and European farming and other subsidies, as well as public contracts.

Under Czech law, government ministers are barred from obtaining public aid or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or not enter government.

Previous Tenure and Current Intentions

Babiš affirmed he would “abide by the regulations” if appointed as premier, but declined to detail how in advance because the matter was “an extremely sensitive and personal matter for me, and journalists will always question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over potential conflicts of interest. He placed his holdings into fiduciary arrangements, while keeping some influence over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but refused to disclose specifics.

Governing Deal and International Consequences

The wealthy politician has signed a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if approved, is likely to bolster the populist movement in the region and might strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also demanded that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, including a pledge to meeting alliance duties.

The head of state has previously said he would not approve any ministerial nominees who might question the nation's international alliances, a requirement that the ultra-conservative party has said it will satisfy by proposing non-partisan experts.