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Andrej Babiš, the self-styled tycoon who secured victory in the recent Czech election, has declined to sell his extensive corporate assets, while insisting he will address a conflict of interest that might block him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn vote but lacked a parliamentary majority, stated in a social media post that he would not divest his Agrofert conglomerate, which operates in agriculture, food production, and chemicals.

“I have consistently stated I will not sell Agrofert. I have repeatedly stated I will resolve the ethical issue in compliance with Czech and European laws,” Babiš remarked. “This is different from selling a roll in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will remove conflicts of interest stemming from his corporate dealings before being appointed prime minister.

The national charter “clearly mandates the head of state to take into account the possible emergence of a conflict of interest and the ways to address it” when selecting cabinet members, Pavel's office noted.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was ready to designate Babiš as premier “immediately” once the issue was resolved.

Business Operations and Legal Issues

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

Under national legislation, cabinet members are barred from obtaining state support or contracts. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or stay out of government.

Previous Term and Current Intentions

Babiš said he would “abide by the regulations” if selected as prime minister, but did not want to detail how in beforehand because the matter was “an extremely sensitive and private affair for me, and the media will invariably criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over possible ethical issues. He placed his assets into fiduciary arrangements, while retaining some influence over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but declined to disclose specifics.

Coalition Agreement and Foreign Policy Implications

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

The incoming administration, if approved, is expected to strengthen the populist movement in central and eastern Europe and could challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for foreign policy, also demanded that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, including a commitment to fulfilling Nato obligations.

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