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Andrej Babiš, the self-proclaimed tycoon who secured victory in last month's Czech election, has declined to offload his vast business interests, while insisting he will resolve a conflict of interest that could prevent him from assuming the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn vote but lacked a parliamentary majority, stated in a social media post that he would not sell his Agrofert conglomerate, which is active in agriculture, food processing, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with Czech and EU regulations,” Babiš remarked. “This is not like selling a roll 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 prime minister.

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, Pavel's office noted.

The president “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the announcement added, stating that Pavel was ready to appoint Babiš as prime minister “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 central European countries, benefiting from millions of euros in national and EU farming and other grants, as well as public contracts.

Under national legislation, government ministers are barred from receiving public aid or agreements. The ethics organization Transparency International has stated that to avoid a ethical breach, Babiš must either sell, decline government deals, or stay out of government.

Previous Tenure and Current Intentions

Babiš said he would “abide by the laws” if selected as premier, but declined to explain how in beforehand because the issue was “an extremely sensitive and personal matter for me, and the media will always question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over possible conflicts of interest. He temporarily moved his holdings into trust funds, while retaining some influence over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but refused to reveal details.

Governing Deal and International Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if approved, is expected to strengthen the populist movement in the region and might challenge western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for foreign policy, also requested that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, with a pledge to fulfilling Nato obligations.

The president has previously said he would not endorse any cabinet candidates who might question the nation's international alliances, a condition that the far-right SPD has indicated it will satisfy by proposing independent technocrats.