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Andrej Babiš, the self-styled tycoon who secured victory in the recent Czech election, has declined to sell his extensive corporate assets, while asserting he will address a conflict of interest that might prevent him from assuming the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party came first in the October election but lacked a parliamentary majority, declared in a social media post 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 consistently stated I will resolve the ethical issue in compliance with Czech and EU regulations,” the billionaire remarked. “This is different from 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 being appointed premier.

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 selecting government ministers, the presidential administration noted.

The president “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the statement added, noting that Pavel was ready to appoint Babiš as premier “immediately” once the issue was settled.

Corporate Activities and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the Czech Republic and other regional states, benefiting from millions of euros in domestic and European farming and other subsidies, as well as public contracts.

Under national legislation, cabinet members cannot receiving public aid or contracts. The ethics organization Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse public contracts, or stay out of government.

Past Tenure and Present Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but did not want to detail how in advance because the issue was “an highly personal and private affair for me, and journalists will invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential ethical issues. He placed his assets into fiduciary arrangements, while retaining some influence 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 maintained he was “implementing measures” to avoid a ethical problem, but declined to disclose details.

Governing Deal and Foreign Policy Consequences

The wealthy politician has signed a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is expected to strengthen the populist bloc in the region and could challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for international relations, also demanded that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, with a pledge to meeting Nato obligations.

The president has earlier stated he would not approve any cabinet candidates who might doubt the Czech Republic’s international alliances, a requirement that the far-right SPD has indicated it will meet by proposing independent technocrats.