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Andrej Babiš, the self-styled tycoon that secured victory in the recent Czech election, has refused to sell his vast business interests, while asserting he will address a conflict of interest that might prevent him from assuming the position of head of government.

Position on Corporate Empire

Babiš, whose ANO party 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 chemical industries.

“I have repeatedly said I will never sell Agrofert. I have consistently said I will resolve the ethical issue in compliance with national and European laws,” the billionaire remarked. “This is different from selling a pastry in a bakeshop.”

President's Demand

The head of state, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove conflicts of interest stemming from his business activities before being appointed premier.

The Czech constitution “explicitly requires 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, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European states, benefiting from substantial funds in domestic and European agricultural and other grants, as well as public contracts.

Under national legislation, cabinet members cannot receiving public aid or agreements. The ethics watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either sell, decline government deals, or stay out of public office.

Previous Tenure and Current Plans

Babiš affirmed he would “follow the laws” if appointed as premier, but declined to explain how in advance because the issue was “an extremely sensitive and personal matter for me, and journalists will always criticise me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an European inquiry over possible conflicts of interest. He placed his assets into trust funds, while retaining certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was again the sole owner of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but refused to reveal specifics.

Governing Agreement and Foreign Policy Consequences

The wealthy politician has signed a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The new government, if approved, is expected to bolster the populist movement in the region and might strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for international relations, also demanded that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, with a pledge to fulfilling Nato obligations.

The president has previously stated he would not endorse any cabinet candidates who might doubt the Czech Republic’s international alliances, a requirement that the ultra-conservative party has said it will satisfy by nominating non-partisan experts.