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Andrej Babiš, the self-styled tycoon that won the recent Czech election, has refused to offload his vast business interests, while insisting he will resolve a conflict of interest that could prevent him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose ANO party came first in the autumn election but lacked a parliamentary majority, declared in a online statement that he would not divest his Agrofert group, which is active in agriculture, food processing, and chemicals.

“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 commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will eliminate ethical conflicts arising from his corporate dealings before assuming the role of premier.

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

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

Corporate Activities and Regulatory Issues

Babiš's numerous companies, primarily under the Agrofert group, operate in the Czech Republic and other regional countries, benefiting from substantial funds in national and EU agricultural and other grants, as well as government deals.

Under Czech law, cabinet members are barred from receiving public aid or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, decline government deals, or not enter public office.

Past Tenure and Current Intentions

Babiš said he would “follow the laws” if selected as prime minister, but declined to detail how in beforehand because the issue was “an highly personal and personal matter for me, and journalists will always question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over possible ethical issues. He placed his assets into trust funds, while keeping some influence over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but refused to reveal specifics.

Governing Deal and Foreign Policy Consequences

The billionaire populist has signed a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for 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 likely to bolster the populist movement in the region and might strain 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 foreign policy, also demanded that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, including a pledge to fulfilling alliance duties.

The head of state has earlier stated he would not endorse any ministerial nominees who might question the nation's EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by nominating independent technocrats.