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Andrej Babiš, the self-proclaimed tycoon who secured victory in the recent Czech election, has declined to offload his extensive business interests, while asserting he will address a conflict of interest that could prevent him from taking the position of head of government.

Position on Corporate Empire

Babiš, whose political movement came first in the autumn election but did not secure a majority in parliament, declared in a social media post that he would not divest his Agrofert group, which operates in farming, food production, and chemicals.

“I have consistently stated I will never sell Agrofert. I have consistently stated I will resolve the conflict of interest in accordance with national and EU regulations,” Babiš remarked. “This is not like selling a roll in a bakeshop.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the elderly political figure must clarify openly how he will remove ethical conflicts stemming from his corporate dealings before assuming the role of premier.

The national charter “explicitly requires the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when appointing government ministers, the presidential administration explained.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement added, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, mostly under the Agrofert group, function in the Czech Republic and other central European states, benefiting from millions of euros in national and EU farming and other grants, as well as public contracts.

Under Czech law, cabinet members are barred from obtaining state support or contracts. The ethics organization Transparency International has stated that to avoid a ethical breach, Babiš must either sell, decline public contracts, or not enter government.

Past Term and Present Intentions

Babiš affirmed he would “follow the laws” if selected as prime minister, but declined to detail how in beforehand because the matter was “an extremely sensitive and private affair for me, and the media will always question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential ethical issues. He placed his holdings into fiduciary arrangements, while retaining certain control over them.

A court and the European Commission both ruled that this did not suffice. Babiš stated last month that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but declined to disclose details.

Coalition Deal and Foreign Policy Implications

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The new government, if confirmed, is likely to strengthen the populist bloc in the region and could challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

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, including a commitment to meeting alliance duties.

The president has earlier stated he would not approve any cabinet candidates who might question the nation's EU and Nato commitments, a condition that the ultra-conservative party has indicated it will satisfy by proposing non-partisan experts.