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Andrej Babiš, the self-styled tycoon that won last month's parliamentary vote, has declined to sell his extensive corporate assets, while asserting he will address a conflict of interest that might prevent him from assuming the role of head of government.

Stance on Business Holdings

Babiš, whose political movement came first in the autumn vote but lacked a parliamentary majority, stated in a online statement that he will not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemicals.

“I have repeatedly said I will not sell Agrofert. I have consistently said I will resolve the ethical issue in compliance with Czech and European laws,” Babiš remarked. “This is different from selling a pastry in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, stated that the elderly political figure must clarify openly how he will eliminate ethical conflicts arising from his business activities before being appointed premier.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, Pavel's office explained.

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

Business Operations and Legal Concerns

Babiš's several hundred companies, primarily under the Agrofert group, function in the Czech Republic and other central European states, benefiting from millions of euros in national and EU farming and other grants, as well as public contracts.

Under Czech law, cabinet members cannot receiving state support or contracts. The anti-corruption watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline public contracts, or not enter public office.

Past Term and Current Plans

Babiš affirmed he would “abide by the laws” if appointed as premier, but did not want to explain how in advance because the issue was “an extremely sensitive and private affair for me, and journalists will invariably question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over possible conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

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

Coalition Agreement and Foreign Policy Implications

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for 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 likely to bolster the populist bloc in the region and could strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him 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 official stance on the conflict in Ukraine, including a commitment to meeting Nato obligations.

The head of state has earlier said he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has said it will meet by proposing non-partisan experts.