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Andrej Babiš, the self-proclaimed 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 might block him from taking the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party came first in the autumn vote but lacked a parliamentary majority, stated in a online statement that he would not sell his Agrofert group, which operates in farming, food processing, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in accordance with national and European laws,” the billionaire remarked. “This is different from selling a pastry in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old political figure 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 head of state to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, the presidential administration explained.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the issue was settled.

Corporate Activities and Legal Issues

Babiš's numerous companies, mostly under the Agrofert group, operate in the Czech Republic and other central European states, receiving substantial funds in domestic and European agricultural and other grants, as well as government deals.

Under Czech law, cabinet members are barred from receiving public aid or contracts. The ethics organization Transparency International has stated that to prevent 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 “abide by the laws” if selected as prime minister, but did not want to explain how in advance because the issue was “an extremely sensitive and personal matter for me, and journalists will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over potential ethical issues. He placed his assets into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but refused to disclose specifics.

Governing Deal and International Implications

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

The incoming administration, if confirmed, is expected to strengthen the populist movement in the region and might challenge western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for international relations, also demanded that the government agenda include a declaration on the official stance on the conflict in Ukraine, including a pledge to fulfilling Nato obligations.

The president has previously stated 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 said it will meet by proposing non-partisan experts.