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Andrej Babiš, the self-proclaimed tycoon that secured victory in last month's parliamentary vote, has refused to offload his extensive corporate assets, while insisting he will resolve a conflict of interest that could prevent him from assuming the position of prime minister.

Stance on Business Holdings

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

“I have repeatedly stated I will not sell Agrofert. I have consistently said I will resolve the ethical issue in accordance with Czech and EU regulations,” the billionaire commented. “This is not like selling a roll in a bakeshop.”

President's Demand

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 assuming the role of premier.

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, the presidential administration explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement added, noting that Pavel was prepared to designate Babiš as premier “without delay” once the issue was settled.

Business Operations and Legal Issues

Babiš's several hundred firms, mostly under the Agrofert umbrella, function in the Czech Republic and other regional states, receiving substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, government ministers are barred from receiving public aid or agreements. The ethics organization Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, decline government deals, or not enter public office.

Previous Term and Present Intentions

Babiš affirmed he would “abide by the laws” if selected as premier, but did not want to detail how in advance because the matter was “an highly personal and private affair for me, and the media will always question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but declined to reveal specifics.

Governing Agreement and International Implications

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The new government, if approved, is likely to bolster the populist bloc in central and eastern Europe and could strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for foreign policy, also demanded that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, including a commitment to fulfilling alliance duties.

The president has earlier said he would not approve any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has said it will satisfy by nominating independent technocrats.