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Andrej Babiš, the self-styled tycoon who won last month's parliamentary vote, has refused to sell his extensive business interests, while insisting he will address a conflict of interest that could block him from assuming the position of head of government.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn election but lacked a parliamentary majority, stated in a online statement that he would not divest his Agrofert group, which is active in agriculture, food processing, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have repeatedly said I will address the conflict of interest in accordance with national and European laws,” Babiš remarked. “This is not like selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the elderly populist must clarify openly how he will eliminate conflicts of interest arising from his business activities before being appointed premier.

The Czech constitution “explicitly requires the head of state to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was ready to appoint Babiš as prime minister “immediately” once the issue was resolved.

Business Operations and Regulatory Issues

Babiš's several hundred firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional countries, benefiting from substantial funds in domestic and European farming and other subsidies, as well as public contracts.

Under Czech law, cabinet members cannot receiving public aid or agreements. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, decline government deals, or stay out of public office.

Past Tenure and Current Plans

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

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over possible conflicts of interest. He temporarily moved his assets into trust funds, while keeping some influence over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš confirmed recently that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but declined to disclose specifics.

Governing Deal and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if approved, is likely to bolster the populist movement in central and eastern Europe and could strain western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda add a statement on the government’s position on the conflict in Ukraine, including a commitment to meeting Nato obligations.

The president has earlier stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by proposing non-partisan experts.