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Andrej Babiš, the self-proclaimed tycoon that won the recent parliamentary vote, has declined to sell his vast business interests, while asserting he will resolve a conflict of interest that might block him from assuming the position of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the October election but lacked a parliamentary majority, stated in a online statement that he would not divest his Agrofert group, which operates in farming, food production, and chemical industries.

“I have consistently said I will never sell Agrofert. I have repeatedly said I will address the ethical issue in compliance with Czech and European laws,” Babiš remarked. “This is different from selling a pastry in a bakery.”

President's Demand

The Czech president, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will remove ethical conflicts stemming from his business activities before being appointed premier.

The Czech constitution “explicitly requires the president to consider the possible emergence of a conflict of interest and the ways to address it” 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 said, noting that Pavel was ready to designate Babiš as prime minister “immediately” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, primarily under the Agrofert group, function in the Czech Republic and other central European countries, receiving substantial funds in domestic and European farming and other grants, as well as government deals.

Under national legislation, cabinet members are barred from obtaining state support or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse government deals, or not enter government.

Previous Term and Present Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but did not want to explain how in advance because the issue was “an highly personal and private affair for me, and journalists will invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over possible ethical issues. He temporarily moved his holdings into trust funds, while retaining certain control 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 insisted he was “taking steps” to avoid a ethical problem, but declined to disclose specifics.

Coalition Agreement and Foreign Policy Consequences

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if confirmed, is expected to bolster the populist movement in central and eastern Europe and could 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 foreign policy, also requested that the government agenda add a declaration on the official stance on Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.

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