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Andrej Babiš, the self-styled tycoon who won the recent parliamentary vote, has declined to sell his vast corporate assets, while asserting he will address a conflict of interest that might prevent him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October vote but did not secure a majority in parliament, stated in a online statement that he will not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

“I have consistently said I will never sell Agrofert. I have consistently stated I will resolve the ethical issue in accordance with Czech and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the elderly political figure must clarify openly how he will eliminate conflicts of interest stemming from his business activities before being appointed premier.

The national charter “clearly mandates the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, the presidential administration explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was ready to designate Babiš as premier “without delay” once the matter was settled.

Business Operations and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert group, operate in the nation and other central European states, receiving substantial funds in national and EU agricultural and other subsidies, as well as public contracts.

Under national legislation, government ministers are barred from obtaining public aid or contracts. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, refuse public contracts, or not enter public office.

Past Term and Present Intentions

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

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over possible ethical issues. He placed his assets into trust funds, while retaining certain control over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but declined to disclose specifics.

Governing Agreement and International Consequences

The billionaire populist has signed 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 environmental policy.

The incoming administration, if confirmed, is likely to strengthen the populist movement in the region and might challenge western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the government agenda include a declaration on the official stance on Russia’s war in Ukraine, with a pledge to fulfilling Nato obligations.

The head of state has earlier stated he would not approve any cabinet candidates who might question the Czech Republic’s international alliances, a condition that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.