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Andrej Babiš, the self-styled tycoon that secured victory in last month's parliamentary vote, has declined to sell his extensive business interests, while asserting he will resolve a conflict of interest that might prevent him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn election but did not secure a majority in parliament, stated in a online statement that he would not divest his Agrofert group, which operates in farming, food processing, and chemicals.

“I have consistently said I will not sell Agrofert. I have consistently stated I will address the ethical issue in accordance with national and European laws,” Babiš commented. “This is not like selling a roll in a bakery.”

Head of State's Requirement

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

The Czech constitution “explicitly requires the president to take into account the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the announcement said, noting that Pavel was prepared to appoint Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Legal Issues

Babiš's numerous companies, primarily under the Agrofert group, operate in the nation and other central European countries, benefiting from millions of euros in domestic and European farming and other grants, as well as public contracts.

Under Czech law, government ministers are barred from receiving public aid or contracts. The ethics watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, decline public contracts, or stay out of public office.

Previous Tenure and Current Intentions

Babiš affirmed he would “abide by the regulations” if selected as prime minister, but declined to detail how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will always question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over potential conflicts of interest. He placed his holdings into trust funds, while keeping some influence over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš stated recently that he was once more the sole owner of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but declined to reveal specifics.

Coalition Deal and International Implications

The billionaire populist has concluded 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 primarily campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is likely to bolster the populist movement in central and eastern Europe and might strain western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme add a statement on the official stance on the conflict in Ukraine, including a pledge to fulfilling Nato obligations.

The head of state has previously stated he would not approve any cabinet candidates who might doubt the Czech Republic’s international alliances, a condition that the ultra-conservative party has said it will satisfy by nominating independent technocrats.