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Andrej Babiš, the self-proclaimed tycoon who secured victory in the recent Czech election, has declined to sell his extensive business interests, while insisting he will resolve a conflict of interest that might block him from assuming the position of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the autumn vote but lacked a parliamentary majority, declared in a social media post that he will not sell his Agrofert group, which operates in farming, food processing, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently stated I will address the ethical issue in accordance with national and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will remove conflicts of interest arising from his business activities before assuming the role of premier.

The national charter “clearly mandates the president to consider the potential occurrence of a ethical issue and the ways to address it” when selecting cabinet members, the presidential administration explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, noting that Pavel was ready to appoint Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Regulatory Issues

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

Under Czech law, cabinet members cannot obtaining public aid or contracts. The ethics organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, decline government deals, or stay out of government.

Past Tenure and Present Intentions

Babiš affirmed he would “follow the regulations” if appointed as prime minister, but declined to detail how in advance because the matter was “an extremely sensitive and private affair for me, and journalists will always criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over possible conflicts of interest. He temporarily moved his assets into trust funds, while retaining some influence over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but refused to disclose specifics.

Governing Deal and International Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if approved, is likely to strengthen the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme include a statement on the official stance on Russia’s war in Ukraine, with a pledge to meeting alliance duties.

The president has previously stated he would not endorse any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has indicated it will meet by proposing independent technocrats.