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Andrej Babiš, the self-styled tycoon who won the recent Czech election, has refused to sell his extensive business interests, while asserting he will resolve a conflict of interest that might block him from assuming the position of prime minister.

Position on Business Holdings

Babiš, whose political movement came first in the autumn election but did not secure a parliamentary majority, declared in a social media post that he will not sell his Agrofert group, which is active in agriculture, food processing, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently said I will resolve the conflict of interest in accordance with Czech and EU regulations,” the billionaire remarked. “This is different from selling a roll in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will remove ethical conflicts arising from his corporate dealings before assuming the role of premier.

The national charter “clearly mandates the president to take into account the possible emergence of a conflict of interest and the ways to address it” when appointing government ministers, the presidential administration noted.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement said, noting that Pavel was ready to appoint Babiš as prime minister “immediately” once the issue was resolved.

Corporate Activities and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert umbrella, operate in the Czech Republic and other central European countries, receiving substantial funds in domestic and European farming and other grants, as well as public contracts.

Under national legislation, government ministers cannot receiving state support or agreements. The anti-corruption organization Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or stay out of public office.

Past Term and Present Intentions

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

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over potential ethical issues. He temporarily moved his assets into trust funds, while retaining certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to disclose details.

Coalition Deal and International Consequences

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if approved, is likely to bolster the populist bloc in the region and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for foreign policy, also requested that the coalition’s programme add a statement on the official stance on the conflict in Ukraine, with a pledge to meeting alliance duties.

The president has earlier stated he would not approve any ministerial nominees who might doubt the nation's international alliances, a requirement that the far-right SPD has said it will meet by proposing independent technocrats.