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Andrej Babiš, the self-styled tycoon that won the recent Czech election, has declined to offload his extensive business interests, while asserting he will address a conflict of interest that could prevent him from assuming the position of head of government.

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the October election but did not secure 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 repeatedly said I will not sell Agrofert. I have repeatedly said I will address the ethical issue in accordance with national and European laws,” the billionaire remarked. “This is not like selling a roll in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will eliminate conflicts of interest arising from his corporate dealings before assuming the role of premier.

The national charter “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when selecting government ministers, the presidential administration explained.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was ready to designate Babiš as prime minister “immediately” once the issue was resolved.

Corporate Activities and Legal Concerns

Babiš's numerous companies, primarily under the Agrofert group, operate in the Czech Republic and other regional states, benefiting from millions of euros in domestic and European agricultural and other grants, as well as public contracts.

Under Czech law, cabinet members are barred from receiving public aid or agreements. The ethics organization Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, refuse government deals, or not enter public office.

Previous Term and Current Intentions

Babiš affirmed he would “abide by the regulations” if appointed as premier, but did not want to detail how in advance because the matter was “an extremely sensitive and private affair for me, and journalists will invariably question me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry 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 ruled that this did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but declined to disclose specifics.

Governing Deal and Foreign Policy Consequences

The wealthy politician has signed a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The new government, if confirmed, is likely to strengthen the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for international relations, also requested that the government agenda add a statement on the government’s position on the conflict in Ukraine, including a pledge to meeting Nato obligations.

The president has previously stated he would not endorse any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will satisfy by nominating independent technocrats.