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Andrej Babiš, the self-proclaimed tycoon who secured victory in last month's Czech election, has declined to offload his vast corporate assets, while asserting he will address a conflict of interest that might prevent him from taking the position of head of government.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October election but lacked a majority in parliament, declared in a social media post that he would not sell his Agrofert group, which operates in agriculture, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with Czech and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakeshop.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove conflicts of interest stemming from his corporate dealings before assuming the role of prime minister.

The national charter “clearly mandates the president to consider the possible emergence of a ethical issue and the ways to address it” when appointing government ministers, the presidential administration noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was ready to designate Babiš as prime minister “without delay” once the matter was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, primarily under the Agrofert group, operate in the Czech Republic and other regional countries, benefiting from substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, government ministers are barred from receiving public aid or contracts. The anti-corruption watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, decline government deals, or stay out of public office.

Previous Term and Present Plans

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

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over potential ethical issues. He placed his holdings into trust funds, while keeping 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 “implementing measures” to avoid a conflict of interest, but refused to reveal details.

Governing Agreement and International Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if confirmed, is expected to strengthen the populist bloc in central and eastern Europe and could challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for foreign policy, also demanded that the coalition’s programme include a declaration on the government’s position on the conflict in Ukraine, including a commitment to meeting Nato obligations.

The president has previously said he would not endorse any ministerial nominees who might doubt the nation's international alliances, a condition that the far-right SPD has indicated it will meet by nominating independent technocrats.