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Andrej Babiš, the self-styled tycoon who secured victory in the recent Czech election, has refused to sell his extensive corporate assets, while insisting he will address a conflict of interest that could prevent him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the October vote but lacked a majority in parliament, stated in a online statement that he will not divest his Agrofert group, which is active in agriculture, food processing, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have repeatedly said I will address the conflict of interest in compliance with Czech and EU regulations,” 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 remove conflicts of interest arising from his corporate dealings before being appointed premier.

The national charter “clearly mandates the head of state to take into account the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, the presidential administration explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement added, noting that Pavel was ready to appoint Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Legal Concerns

Babiš's several hundred firms, mostly under the Agrofert group, operate in the nation and other central European countries, receiving substantial funds in domestic and European agricultural and other grants, as well as public contracts.

Under national legislation, cabinet members cannot obtaining public aid or agreements. The anti-corruption organization Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline public contracts, or stay out of public office.

Past Tenure and Present Plans

Babiš said he would “follow the laws” if selected as prime minister, but declined to explain how in advance because the matter was “an extremely sensitive and private affair for me, and the media will invariably criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over possible conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but declined to reveal details.

Coalition Deal and Foreign Policy Implications

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if confirmed, is likely to strengthen the populist movement in the region and might strain western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for foreign policy, also requested that the government agenda include a statement on the official stance on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

The head of state has previously said he would not endorse any ministerial nominees who might doubt the Czech Republic’s international alliances, a requirement that the ultra-conservative party has indicated it will meet by proposing independent technocrats.