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Andrej Babiš, the self-styled tycoon that won the recent parliamentary vote, has declined to sell his extensive corporate assets, while asserting he will resolve a conflict of interest that might block him from assuming the position of head of government.

Position on Corporate Empire

Babiš, whose ANO party came first in the October election but did not secure a majority in parliament, declared in a social media post that he would not divest his Agrofert conglomerate, which operates in farming, food processing, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have repeatedly said I will address the ethical issue in compliance with Czech and EU regulations,” the billionaire remarked. “This is different from selling a roll in a bakeshop.”

President's Requirement

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

The Czech constitution “clearly mandates the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when selecting cabinet members, Pavel's office noted.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the announcement added, stating that Pavel was prepared to designate Babiš as prime minister “immediately” once the issue was resolved.

Business Operations and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the Czech Republic and other regional states, receiving substantial funds in domestic and European agricultural and other grants, as well as government deals.

Under national legislation, government ministers are barred from obtaining state support or contracts. The ethics organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or stay out of public office.

Past Term and Current Intentions

Babiš said he would “abide by the regulations” if appointed as prime minister, but declined to detail how in advance because the issue was “an extremely sensitive and personal matter for me, and journalists will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but declined to disclose details.

Governing Agreement and International Implications

The wealthy politician has concluded 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 approved, is likely to strengthen the populist movement in central and eastern Europe and might challenge western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

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

The head of state has earlier said he would not endorse any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by nominating non-partisan experts.