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Andrej Babiš, the self-styled tycoon that won the recent parliamentary vote, has refused to offload his vast business interests, while insisting he will resolve a conflict of interest that could prevent him from assuming the position of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn vote but lacked a parliamentary majority, declared in a social media post that he would not divest his Agrofert group, which is active in farming, food processing, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with national and European laws,” the billionaire commented. “This is different from selling a roll in a bakery.”

President's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts stemming from his business activities before assuming the role of premier.

The national charter “clearly mandates the head of state to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, stating that Pavel was prepared to appoint Babiš as prime minister “immediately” once the matter was resolved.

Corporate Activities and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the nation and other central European states, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as government deals.

Under national legislation, cabinet members cannot obtaining state support or agreements. The ethics watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, decline public contracts, or stay out of government.

Past Tenure and Current Intentions

Babiš affirmed he would “abide by the laws” if selected as premier, but declined to explain how in advance because the matter was “an extremely sensitive and personal matter for me, and journalists will always question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over potential ethical issues. He placed his assets into trust funds, while keeping some influence over them.

A court and the European Commission both determined that this did not suffice. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but refused to reveal specifics.

Governing Agreement and Foreign Policy Implications

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

The new government, if approved, is likely to bolster 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 Czech support.

Pavel, who as head of state shares responsibility for international relations, also requested that the government agenda add a statement on the government’s position on the conflict in Ukraine, including a commitment to meeting Nato obligations.

The president has earlier stated he would not approve 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 satisfy by proposing non-partisan experts.