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Andrej Babiš, the self-proclaimed tycoon who won the recent parliamentary vote, has refused to offload his extensive corporate assets, while insisting he will resolve a conflict of interest that could block him from assuming the position of prime minister.

Position on Corporate Empire

Babiš, whose ANO party came first in the October vote but did not secure a parliamentary majority, stated in a social media post that he will not sell his Agrofert group, which is active in agriculture, food production, and chemical industries.

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

President's Demand

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will eliminate conflicts of interest arising from his business activities before assuming the role of premier.

The national charter “clearly mandates the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when selecting cabinet members, 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, stating that Pavel was prepared to designate Babiš as prime minister “immediately” once the issue was resolved.

Corporate Activities and Legal Concerns

Babiš's several hundred companies, mostly under the Agrofert group, function in the nation and other central European states, receiving substantial funds in domestic and European agricultural and other grants, as well as public contracts.

Under Czech law, cabinet members cannot obtaining state support or contracts. The ethics watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, decline public contracts, or stay out of public office.

Past Tenure and Present Plans

Babiš affirmed he would “follow the laws” if selected as prime minister, but did not want to explain how in beforehand because the matter was “an extremely sensitive and private affair for me, and journalists will always question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible ethical issues. He temporarily moved his holdings into trust funds, while retaining certain control over them.

A court and the European Commission both ruled that this did not suffice. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but declined to disclose details.

Governing Agreement and International Consequences

The wealthy politician has signed a governing pact 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 opposed the EU’s Green Deal.

The incoming administration, if approved, is likely to strengthen the populist bloc in the region and could challenge western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for international relations, also demanded that the coalition’s programme include a statement on the official stance on the conflict in Ukraine, with a pledge to meeting alliance duties.

The president has previously said he would not approve any cabinet candidates who might question the nation's international alliances, a requirement that the ultra-conservative party has indicated it will satisfy by nominating non-partisan experts.