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

Stance on Business Holdings

Babiš, whose political movement came first in the autumn election but did not secure a majority in parliament, stated in a online statement that he will not divest his Agrofert group, which is active in farming, food production, and chemicals.

“I have consistently stated I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with Czech and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

President's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts arising from his business activities before being appointed prime minister.

The Czech constitution “clearly mandates the head of state to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, the presidential administration noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the announcement added, stating that Pavel was ready to designate Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Legal Issues

Babiš's several hundred firms, primarily under the Agrofert umbrella, operate in the Czech Republic and other regional states, benefiting from substantial funds in domestic and European agricultural and other grants, as well as public contracts.

Under Czech law, government ministers cannot receiving public aid or agreements. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, decline government deals, or stay out of public office.

Previous Tenure and Present Intentions

Babiš said he would “follow the regulations” if appointed as premier, but declined to detail how in advance because the matter was “an extremely sensitive and private affair for me, and journalists will always criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over possible conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while keeping certain control over them.

A court and the European Commission both ruled that this was insufficient. Babiš stated last month that he was again the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but refused to disclose details.

Coalition Deal and International Consequences

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

The new government, if confirmed, is expected to strengthen the populist movement in central and eastern Europe and might strain western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for foreign policy, also requested that the government agenda add a statement on the official stance on Russia’s war in Ukraine, with a commitment to fulfilling alliance duties.

The head of state has earlier said he would not endorse any cabinet candidates who might doubt the Czech Republic’s international alliances, a condition that the far-right SPD has indicated it will meet by nominating independent technocrats.