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Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent parliamentary vote, has refused to offload his vast corporate assets, while insisting he will address a conflict of interest that might block him from taking the position of head of government.

Stance on Business Holdings

Babiš, whose political movement came first in the autumn vote but did not secure a parliamentary majority, stated in a social media post that he will not divest his Agrofert group, which operates in farming, food production, and chemical industries.

“I have consistently said I will never sell Agrofert. I have consistently said I will address the ethical issue in accordance with national and European laws,” Babiš remarked. “This is different from selling a roll in a bakery.”

President's Requirement

The head of state, Petr Pavel, announced that the elderly populist must clarify openly how he will remove conflicts of interest arising from his business activities before assuming the role of prime minister.

The Czech constitution “explicitly requires the president to consider the possible emergence of a conflict of interest and the ways to address it” when selecting cabinet members, the presidential administration noted.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, stating that Pavel was ready to designate Babiš as prime minister “without delay” once the matter was settled.

Business Operations and Legal Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the Czech Republic and other central European countries, benefiting from substantial funds in domestic and European agricultural and other grants, as well as government deals.

Under Czech law, government ministers cannot obtaining state support or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or not enter government.

Previous Term and Current Plans

Babiš affirmed he would “abide by the regulations” 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 journalists will always criticise me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over possible conflicts of interest. He placed his assets into trust funds, while keeping certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš stated last month that he was again the sole owner of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but refused to disclose specifics.

Coalition Deal and International Implications

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated 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 approved, is expected to strengthen the populist bloc in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has contacted 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 coalition’s programme add a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to meeting alliance duties.

The president has earlier said he would not approve any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has said it will meet by nominating non-partisan experts.