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

Position on Corporate Empire

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

“I have repeatedly stated I will not sell Agrofert. I have repeatedly stated I will address the conflict of interest in compliance with Czech and European laws,” the billionaire commented. “This is not like selling a pastry 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 eliminate ethical conflicts arising from his corporate dealings before being appointed premier.

The Czech constitution “explicitly requires the president to consider the possible emergence of a ethical issue and the ways to address it” when selecting government ministers, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert umbrella, function in the Czech Republic and other regional states, benefiting from millions of euros in domestic and European agricultural and other grants, as well as public contracts.

Under Czech law, government ministers are barred from obtaining public aid or agreements. The anti-corruption watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or stay out of public office.

Previous Term and Present Intentions

Babiš affirmed he would “follow the laws” if selected as premier, but declined to explain how in beforehand because the matter was “an highly personal and private affair for me, and the media will invariably criticise me anyway”.

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

A judicial body and the EU executive both determined that this was insufficient. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but declined to disclose details.

Coalition Deal and International Implications

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly 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 expected to strengthen the populist movement in the region and could strain western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the government agenda add a declaration on the government’s position on the conflict in Ukraine, with a commitment to fulfilling alliance duties.

The president has previously said he would not endorse any ministerial nominees who might question the nation's EU and Nato commitments, a requirement that the ultra-conservative party has said it will meet by proposing independent technocrats.