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Andrej Babiš, the self-proclaimed tycoon who won the recent parliamentary vote, has refused to offload his vast corporate assets, while insisting he will resolve a conflict of interest that might block him from assuming the role of prime minister.

Position on Business Holdings

Babiš, whose ANO party came first in the October election but did not secure a parliamentary majority, stated in a social media post that he will not sell his Agrofert conglomerate, which operates in farming, food production, and chemical industries.

“I have consistently said I will never sell Agrofert. I have consistently stated I will address the conflict of interest in compliance with national and European laws,” Babiš remarked. “This is not like selling a pastry in a bakeshop.”

President's Demand

The head of state, Petr Pavel, stated that the elderly populist must clarify openly how he will eliminate conflicts of interest stemming from his corporate dealings before being appointed prime minister.

The Czech constitution “explicitly requires the president to take into account the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, the presidential administration explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement said, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Legal Issues

Babiš's several hundred companies, primarily under the Agrofert group, operate in the nation and other central European states, receiving substantial funds in national and EU farming and other grants, as well as government deals.

Under national legislation, government ministers cannot receiving state support or contracts. The anti-corruption organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, refuse government deals, or not enter public office.

Past Term and Present Intentions

Babiš said he would “follow the regulations” if selected as prime minister, but did not want to detail how in advance because the issue was “an extremely sensitive and private affair for me, and journalists will always criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over potential conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.

A court and the European Commission both ruled that this did not suffice. Babiš stated last month that he was once more the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but refused to disclose details.

Governing Deal and International Implications

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if approved, is expected to bolster the populist bloc in central and eastern Europe and could strain western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for international relations, also requested that the government agenda include a statement on the official stance on the conflict in Ukraine, with a pledge to fulfilling Nato obligations.

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