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Andrej Babiš, the self-proclaimed tycoon who secured victory in the recent Czech election, has refused to sell his extensive business interests, while asserting he will resolve a conflict of interest that might block him from assuming the role of head of government.

Stance on Business Holdings

Babiš, whose political movement came first in the October vote but did not secure a parliamentary majority, declared in a social media post that he will not divest his Agrofert conglomerate, which is active in agriculture, food processing, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with national and European laws,” Babiš commented. “This is not like selling a roll in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will eliminate conflicts of interest arising from his corporate dealings before assuming the role of premier.

The national charter “clearly mandates the president 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 head of state “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement said, noting that Pavel was prepared to designate Babiš as prime minister “immediately” once the issue was settled.

Business Operations and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the Czech Republic and other regional states, receiving substantial funds in national and EU farming and other subsidies, as well as government deals.

Under Czech law, government ministers are barred from receiving public aid or agreements. The ethics organization Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline public contracts, or not enter public office.

Previous Term and Present Plans

Babiš affirmed he would “follow the regulations” if appointed as prime minister, but did not want to explain how in advance because the issue was “an highly personal and private affair for me, and the media will always question me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over potential ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A court and the European Commission both determined that this did not suffice. Babiš stated recently that he was once more the sole owner of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but declined to disclose details.

Governing Deal and International Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if approved, is likely to strengthen the populist movement in central and eastern Europe and might challenge western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility 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 alliance duties.

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