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Andrej Babiš, the self-proclaimed tycoon who won the recent Czech election, has refused to sell his extensive business interests, while asserting he will address a conflict of interest that could block him from assuming the position of prime minister.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn vote but lacked a parliamentary majority, stated in a social media post that he will not sell his Agrofert group, which is active in agriculture, food processing, and chemicals.

“I have consistently said I will not sell Agrofert. I have consistently said I will resolve the ethical issue in compliance with national and EU regulations,” Babiš commented. “This is not like 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 remove ethical conflicts arising from his business activities before being appointed premier.

The national charter “explicitly requires the president to consider the possible emergence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the statement added, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Legal Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the nation and other regional states, receiving millions of euros in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, cabinet members cannot receiving state support or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, decline government deals, or not enter government.

Previous Tenure and Current Intentions

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

During his first term as premier, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over possible ethical issues. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš confirmed recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but refused to disclose specifics.

Governing Deal and Foreign Policy 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 campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to bolster the populist bloc in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for foreign policy, also requested that the government agenda include a declaration on the official stance on the conflict in Ukraine, including a commitment to fulfilling alliance duties.

The head of state has earlier said he would not endorse any cabinet candidates who might question the Czech Republic’s international alliances, a condition that the far-right SPD has said it will meet by proposing independent technocrats.