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Andrej Babiš, the self-proclaimed tycoon who won the recent parliamentary vote, has declined to offload his vast corporate assets, while insisting he will address a conflict of interest that might prevent him from assuming the role of head of government.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the October election but lacked a parliamentary majority, declared in a online statement that he will not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.

“I have consistently said I will not sell Agrofert. I have repeatedly stated I will address the conflict of interest in compliance with national and EU regulations,” the billionaire commented. “This is different from selling a pastry in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate conflicts of interest arising from his business activities before assuming the role of prime minister.

The national charter “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, the presidential administration explained.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, noting that Pavel was prepared to appoint Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the Czech Republic and other central European countries, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as public contracts.

Under Czech law, cabinet members are barred from receiving state support or contracts. The anti-corruption watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either divest, decline public contracts, or not enter government.

Previous Term and Present Plans

Babiš said he would “abide by the regulations” if selected as prime minister, but did not want to detail how in beforehand because the issue was “an extremely sensitive and personal matter for me, and journalists will always criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential 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 ruled that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but refused to reveal details.

Coalition Agreement and International Consequences

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to strengthen the populist movement in central and eastern Europe and might strain western support for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the government agenda add a declaration on the official stance on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

The head of state has earlier stated he would not approve any ministerial nominees who might question the nation's EU and Nato commitments, a condition that the far-right SPD has indicated it will satisfy by nominating independent technocrats.