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Andrej Babiš, the self-styled tycoon who won the recent Czech election, has refused to offload his extensive corporate assets, while insisting he will resolve a conflict of interest that could prevent him from taking the position of head of government.

Stance on Corporate Empire

Babiš, whose political movement came first in the October election but did not secure a parliamentary majority, stated in a social media post that he would not divest his Agrofert conglomerate, which is active in agriculture, food processing, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have consistently said I will address the conflict of interest in accordance with national and European laws,” Babiš commented. “This is different from selling a pastry in a bakeshop.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will remove ethical conflicts stemming from his corporate dealings before assuming the role of prime minister.

The Czech constitution “clearly mandates the head of state to consider the possible emergence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office explained.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement said, noting that Pavel was ready to appoint Babiš as prime minister “immediately” once the matter was settled.

Corporate Activities and Regulatory Issues

Babiš's several hundred firms, primarily under the Agrofert group, function in the nation and other regional countries, benefiting from millions of euros in national and EU agricultural and other grants, as well as government deals.

Under national legislation, government ministers are barred from obtaining state support or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline government deals, or stay out of government.

Past Term and Current Intentions

Babiš affirmed he would “abide by the laws” if appointed as premier, but declined to detail how in beforehand because the matter was “an extremely sensitive and private affair for me, and journalists will always question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over potential ethical issues. He placed his holdings into trust funds, while retaining some influence over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to reveal details.

Coalition Deal and International Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote 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 expected to bolster the populist movement in central and eastern Europe and could challenge backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for international relations, also requested that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, with a pledge to fulfilling Nato obligations.

The head of state has earlier stated he would not endorse any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has indicated it will satisfy by nominating independent technocrats.