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Andrej Babiš, the self-styled tycoon who won last month's Czech election, has declined to offload his vast corporate assets, while insisting he will address a conflict of interest that might block him from assuming the position of head of government.

Position on Corporate Empire

Babiš, whose political movement came first in the autumn election but lacked a parliamentary majority, stated in a social media post that he will not sell his Agrofert group, which operates in agriculture, food production, and chemical industries.

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

Head of State's Demand

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

The national charter “clearly mandates the head of state to consider the possible emergence of a ethical issue and the ways to address it” when appointing government ministers, Pavel's office explained.

The president “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the announcement said, stating that Pavel was prepared to appoint Babiš as premier “without delay” once the matter was settled.

Corporate Activities and Legal Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the nation and other central European states, receiving substantial funds in domestic and European farming and other subsidies, as well as government deals.

Under national legislation, government ministers cannot obtaining public aid or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline public contracts, or not enter government.

Previous Tenure and Current Plans

Babiš affirmed he would “follow the regulations” if appointed as prime minister, but declined to explain how in advance because the matter was “an extremely sensitive and personal matter for me, and journalists will invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over possible ethical issues. He placed his holdings into trust funds, while keeping some influence over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš stated recently that he was again the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to reveal details.

Governing Deal and Foreign Policy Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The incoming administration, if approved, is likely to strengthen the populist bloc in the region and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for international relations, also demanded that the government agenda include a declaration on the official stance on the conflict in Ukraine, with a commitment to fulfilling alliance duties.

The head of state has earlier stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has said it will meet by nominating independent technocrats.