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Andrej Babiš, the self-styled tycoon who won the recent Czech election, has declined to sell his extensive corporate assets, while insisting he will resolve a conflict of interest that might prevent him from assuming the role of prime minister.

Stance on Corporate Empire

Babiš, whose political movement came first in the October vote but did not secure a parliamentary majority, declared in a social media post that he would not divest his Agrofert group, which is active in agriculture, food production, and chemicals.

“I have consistently said I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in accordance with Czech and EU regulations,” Babiš remarked. “This is not like selling a roll in a bakery.”

President's Demand

The head of state, Petr Pavel, announced that the elderly political figure must clarify openly how he will remove ethical conflicts arising from his corporate dealings before being appointed prime minister.

The national charter “clearly mandates the head of state to consider the possible emergence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, Pavel's office explained.

The president “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was prepared to appoint Babiš as prime minister “immediately” once the issue was settled.

Business Operations and Legal Concerns

Babiš's numerous companies, primarily under the Agrofert umbrella, operate in the nation and other central European countries, receiving substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, cabinet members cannot obtaining public aid or agreements. The ethics watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or stay out of public office.

Previous Term and Current Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but did not want to explain how in beforehand because the matter was “an extremely sensitive and personal matter for me, and the media will invariably criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible ethical issues. 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 last month that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to reveal specifics.

Governing Agreement and International Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if approved, is likely to strengthen the populist movement in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for international relations, also requested that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, including a commitment to meeting alliance duties.

The president has earlier said he would not endorse any cabinet candidates who might question the Czech Republic’s international alliances, a condition that the ultra-conservative party has said it will satisfy by proposing independent technocrats.