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Andrej Babiš, the self-styled tycoon who won the recent parliamentary vote, has refused to offload his vast corporate assets, while asserting he will resolve a conflict of interest that could prevent him from assuming the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the October vote but lacked a majority in parliament, declared in a social media post that he will not divest his Agrofert group, which is active in farming, food production, and chemicals.

“I have repeatedly said I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with national and European laws,” the billionaire commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will eliminate ethical conflicts stemming from his business activities before being appointed prime minister.

The Czech constitution “explicitly requires the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, Pavel's office noted.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was ready to designate Babiš as premier “immediately” once the issue was settled.

Corporate Activities and Legal Issues

Babiš's numerous companies, primarily under the Agrofert umbrella, function in the Czech Republic and other central European countries, receiving millions of euros in domestic and European farming and other subsidies, as well as government deals.

Under national legislation, government ministers cannot receiving public aid or contracts. The ethics organization Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse government deals, or stay out of public office.

Previous Term and Present Intentions

Babiš said he would “abide by the laws” if selected as premier, but declined to explain how in beforehand because the matter was “an highly personal 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 several court cases and an EU investigation over possible conflicts of interest. He temporarily moved his holdings into trust funds, while retaining certain control over them.

A court and the European Commission both determined that this did not suffice. Babiš stated last month that he was again the sole owner of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but refused to disclose details.

Governing Deal and Foreign Policy Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The new government, if confirmed, is likely to bolster the populist bloc 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 head of state has a role for foreign policy, also demanded that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, including a pledge to fulfilling alliance duties.

The head of state has previously said he would not endorse any cabinet candidates who might doubt the nation's EU and Nato commitments, a requirement that the far-right SPD has indicated it will satisfy by proposing independent technocrats.