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Andrej Babiš, the self-styled tycoon that secured victory in the recent Czech election, has declined to offload his vast corporate assets, while asserting he will address a conflict of interest that could block him from taking the role of head of government.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October vote but did not secure a parliamentary majority, stated in a social media post that he will not divest his Agrofert conglomerate, which operates in farming, food production, and chemicals.

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

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will remove ethical conflicts stemming from his business activities before assuming the role of premier.

The national charter “clearly mandates the president to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, stating that Pavel was ready to appoint Babiš as premier “without delay” once the matter was resolved.

Business Operations and Regulatory Concerns

Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional countries, receiving millions of euros in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot obtaining state support or agreements. The ethics watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, decline public contracts, or stay out of public office.

Past Tenure and Present Intentions

Babiš affirmed he would “follow the laws” if appointed as premier, but did not want to explain how in advance because the issue was “an highly personal and personal matter for me, and the media will invariably question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over possible conflicts of interest. He placed his holdings into trust funds, while keeping some influence over them.

A court and the European Commission both ruled that this did not suffice. Babiš stated recently that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but declined to reveal details.

Governing Deal and International Implications

The wealthy politician has signed a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if approved, is likely to bolster the populist bloc in central and eastern Europe and might strain western support 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 international relations, also requested that the coalition’s programme add a declaration on the government’s position on Russia’s war in Ukraine, including a commitment 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 condition that the ultra-conservative party has indicated it will meet by nominating independent technocrats.