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Andrej Babiš, the self-proclaimed tycoon who secured victory in last month's Czech election, has refused to offload his vast corporate assets, while insisting he will address a conflict of interest that might block him from taking the role of head of government.

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the autumn election but lacked a majority in parliament, declared in a social media post that he will not divest his Agrofert conglomerate, which is active in agriculture, food processing, and chemicals.

“I have repeatedly said I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with national and European laws,” the billionaire remarked. “This is different from selling a pastry in a bakery.”

President's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will remove conflicts of interest stemming from his corporate dealings before assuming the role of prime minister.

The Czech constitution “clearly mandates the president to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, Pavel's office explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, noting that Pavel was ready to designate Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the Czech Republic and other central European states, receiving substantial funds in domestic and European farming and other grants, as well as public contracts.

Under national legislation, cabinet members are barred from receiving public aid or agreements. The ethics organization Transparency International has stated that to avoid a ethical breach, Babiš must either divest, refuse public contracts, or stay out of government.

Past Term and Present Intentions

Babiš said he would “abide by the laws” if appointed as premier, but did not want to detail how in advance because the matter was “an extremely sensitive and private affair for me, and the media will invariably criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over potential conflicts of interest. He placed his assets into trust funds, while retaining certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but refused to disclose specifics.

Coalition Agreement and International Consequences

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote 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 movement in the region and might strain western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president 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, with a pledge to fulfilling Nato obligations.

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