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Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent Czech election, has refused to offload his vast corporate assets, while insisting he will address a conflict of interest that might prevent him from assuming the role of head of government.

Position on Corporate Empire

Babiš, whose ANO party came first in the October vote but did not secure a parliamentary majority, declared in a online statement that he will not sell his Agrofert conglomerate, which is active in farming, food production, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with Czech and EU regulations,” the billionaire remarked. “This is different from selling a roll in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will eliminate conflicts of interest stemming from his business activities before assuming the role of prime minister.

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 cabinet members, the presidential administration explained.

The head of state “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the statement added, noting that Pavel was prepared to designate Babiš as premier “without delay” once the issue was settled.

Business Operations and Regulatory Issues

Babiš's several hundred firms, mostly under the Agrofert umbrella, operate in the nation and other regional countries, receiving millions of euros in domestic and European agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers cannot obtaining state support or agreements. The ethics organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline public contracts, or not enter public office.

Previous Tenure and Present Intentions

Babiš affirmed he would “abide by the regulations” if selected as premier, but declined to explain how in advance because the matter was “an highly personal and private affair for me, and the media will invariably question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over potential ethical issues. He placed his holdings into trust funds, while keeping certain control over them.

A court and the European Commission both ruled that this was insufficient. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to reveal details.

Governing Agreement and Foreign Policy Consequences

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if confirmed, is expected to strengthen the populist movement in central and eastern Europe and could challenge western support 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 foreign policy, also demanded that the government agenda add a statement on the government’s position on the conflict in Ukraine, including a commitment to meeting alliance duties.

The president has previously said he would not approve any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has said it will meet by proposing independent technocrats.