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

Stance on Corporate Empire

Babiš, whose ANO party came first in the October election but lacked a majority in parliament, stated in a social media post that he would not divest his Agrofert group, which operates in agriculture, food processing, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with Czech and European laws,” Babiš commented. “This is different from selling a roll in a bakery.”

President's Demand

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove conflicts of interest arising from his corporate dealings before assuming the role of premier.

The Czech constitution “clearly mandates the president to consider the potential occurrence of a ethical issue 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 meet his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to appoint Babiš as premier “without delay” once the issue was settled.

Business Operations and Regulatory Concerns

Babiš's numerous firms, primarily under the Agrofert group, operate in the nation and other regional states, receiving substantial funds in domestic and European farming and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot receiving public aid or contracts. The anti-corruption watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse government deals, or stay out of public office.

Past Term and Current Intentions

Babiš said he would “abide by the laws” if appointed as premier, but did not want to explain how in beforehand because the matter was “an extremely sensitive and private affair for me, and journalists will always criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over possible conflicts of interest. He temporarily moved his assets into trust funds, while keeping some influence over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš stated last month that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to disclose specifics.

Coalition Agreement and Foreign Policy Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if approved, is likely to bolster the populist movement in the region and could strain western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also requested that the government agenda add a statement on the official stance on the conflict in Ukraine, with a commitment to meeting alliance duties.

The head of state has earlier 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 meet by proposing independent technocrats.