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Andrej Babiš, the self-styled tycoon that won last month's parliamentary vote, has declined to sell his vast business interests, while insisting 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 political movement came first in the autumn election but lacked a majority in parliament, declared in a online statement that he would not sell his Agrofert group, which operates in agriculture, food production, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have repeatedly stated I will address the conflict of interest in compliance with national and European laws,” Babiš commented. “This is different from selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the elderly populist must publicly explain how he will eliminate conflicts of interest stemming from his business activities before being appointed premier.

The Czech constitution “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous companies, mostly under the Agrofert group, function in the nation and other central European countries, receiving substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members are barred from obtaining public aid or contracts. The ethics watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, refuse government deals, or not enter government.

Past Tenure and Present Plans

Babiš said he would “follow the laws” if appointed as premier, but declined to detail how in advance because the matter was “an extremely sensitive and private affair for me, and the media will invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over potential conflicts of interest. He placed his holdings into fiduciary arrangements, while keeping certain control over them.

A judicial body and the European Commission both ruled that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but declined to reveal details.

Coalition Agreement and International Implications

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if confirmed, is expected to bolster the populist bloc in central and eastern Europe and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for international relations, also requested that the government agenda include a declaration on the official stance on Russia’s war in Ukraine, including a commitment to meeting alliance duties.

The president has earlier said he would not endorse any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has said it will meet by nominating independent technocrats.