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Andrej Babiš, the self-styled tycoon who secured victory in the recent Czech election, has declined to sell his extensive corporate assets, while insisting he will address a conflict of interest that could block him from taking the position of head of government.

Position on Corporate Empire

Babiš, whose ANO party came first in the autumn election but lacked a parliamentary majority, declared in a social media post that he will not sell his Agrofert conglomerate, which is active in agriculture, food production, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in compliance with Czech and EU regulations,” the billionaire remarked. “This is different from selling a pastry in a bakery.”

President's Demand

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will eliminate ethical conflicts stemming from his corporate dealings before assuming the role of premier.

The national charter “clearly mandates the president to take into account the possible emergence of a conflict of interest and the ways to address it” when appointing cabinet members, Pavel's office explained.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, noting that Pavel was prepared to designate Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, operate in the nation and other central European countries, benefiting from millions of euros in domestic and European farming and other grants, as well as public contracts.

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The anti-corruption organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, refuse public contracts, or stay out of public office.

Previous Term and Present Intentions

Babiš affirmed he would “follow the laws” if selected as prime minister, but did not want to detail how in advance because the matter was “an extremely sensitive and personal matter for me, and the media will invariably criticise me anyway”.

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 temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.

A court and the EU executive both ruled that this did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but refused to disclose details.

Coalition Deal and International Consequences

The wealthy politician has signed a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if confirmed, is expected to strengthen the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the government agenda include a declaration on the government’s position on the conflict in Ukraine, including a pledge to meeting alliance duties.

The head of state has earlier stated he would not endorse any ministerial nominees who might question the nation's international alliances, a requirement that the ultra-conservative party has indicated it will meet by proposing independent technocrats.