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Andrej Babiš, the self-proclaimed tycoon who won last month's Czech election, has refused to sell his extensive corporate assets, while asserting he will resolve a conflict of interest that might block him from taking the role of head of government.

Stance on Business Holdings

Babiš, whose political movement came first in the October vote but lacked a majority in parliament, declared in a social media post that he will not divest his Agrofert group, which is active in agriculture, food processing, and chemical industries.

“I have consistently said I will not sell Agrofert. I have repeatedly stated I will resolve the conflict of interest in accordance with national and European laws,” the billionaire commented. “This is different from selling a pastry in a bakery.”

President's Requirement

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove ethical conflicts stemming from his corporate dealings before being appointed premier.

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

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, noting that Pavel was ready to designate Babiš as premier “without delay” once the matter was settled.

Corporate Activities and Legal Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, operate in the nation and other regional countries, receiving millions of euros in domestic and European agricultural and other subsidies, as well as government deals.

Under national legislation, cabinet members cannot receiving state support or contracts. The ethics organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, decline government deals, or stay out of government.

Previous Term and Present Plans

Babiš said he would “abide by the regulations” if appointed as premier, but did not want to explain how in advance because the issue was “an extremely sensitive and personal matter for me, and journalists will invariably criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over potential conflicts of interest. He temporarily moved his holdings into trust funds, while retaining certain control over them.

A court and the European Commission both determined that this was insufficient. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but refused to reveal details.

Coalition Agreement and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The incoming administration, if confirmed, is likely to bolster the populist movement in central and eastern Europe and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for international relations, also requested that the government agenda add a statement on the official stance on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The head of state has previously stated he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a condition that the far-right SPD has indicated it will satisfy by nominating independent technocrats.