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Andrej Babiš, the self-styled tycoon that secured victory in the recent parliamentary vote, has refused to sell his vast business interests, while asserting he will address a conflict of interest that could prevent him from taking the role of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the October vote but did not secure a majority in parliament, declared in a online statement that he would not sell his Agrofert conglomerate, which is active in farming, food production, and chemicals.

“I have consistently stated I will not sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with Czech and EU regulations,” Babiš remarked. “This is not like 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 conflicts of interest arising from his corporate dealings before assuming the role of premier.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a ethical issue and the ways to address it” when appointing government ministers, Pavel's office noted.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was prepared to designate Babiš as prime minister “immediately” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, mostly under the Agrofert group, operate in the Czech Republic and other regional countries, receiving substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, government ministers are barred from receiving public aid or contracts. The anti-corruption watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, refuse public contracts, or stay out of public office.

Past Tenure and Current Intentions

Babiš affirmed he would “follow the regulations” if selected as prime minister, but did not want to detail how in beforehand because the matter was “an highly personal and personal matter for me, and the media will always question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over potential conflicts of interest. He placed his holdings into fiduciary arrangements, while keeping some influence over them.

A court and the EU executive both ruled that this did not suffice. Babiš stated last month that he was again the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to reveal specifics.

Governing Deal and International Implications

The billionaire populist has signed a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if confirmed, is likely to bolster the populist bloc in central and eastern Europe and could challenge backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, 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 include a declaration on the government’s position on the conflict in Ukraine, including a commitment to meeting alliance duties.

The head of state has previously said he would not approve any ministerial nominees who might question the nation's EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by nominating non-partisan experts.