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Andrej Babiš, the self-styled tycoon who won last month's Czech election, has declined to sell his vast corporate assets, while asserting he will address a conflict of interest that could prevent him from assuming the role of prime minister.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but did not secure a parliamentary majority, stated in a social media post that he will not sell his Agrofert conglomerate, which operates in farming, food production, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have consistently said I will address the ethical issue in accordance with national and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will eliminate conflicts of interest arising from his business activities before assuming the role of prime minister.

The Czech constitution “explicitly requires the head of state to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration noted.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was ready to appoint Babiš as prime minister “without delay” once the matter was resolved.

Business Operations and Legal Issues

Babiš's numerous companies, primarily under the Agrofert umbrella, function in the Czech Republic and other central European countries, benefiting from substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot obtaining public aid or agreements. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or not enter public office.

Past Tenure and Current Plans

Babiš said he would “abide by the regulations” if appointed as prime minister, but did not want to detail how in beforehand because the issue was “an highly personal and private affair for me, and the media will always criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several court cases and an EU investigation over possible conflicts of interest. He placed his holdings into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but refused to reveal specifics.

Governing Deal and International Consequences

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

The new government, if approved, is likely to bolster the populist movement in central and eastern Europe and might challenge western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for international relations, also demanded that the government agenda include a declaration on the official stance on Russia’s war in Ukraine, with a commitment to meeting Nato obligations.

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