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Andrej Babiš, the self-styled tycoon that secured victory in the recent parliamentary vote, has declined to sell his vast business interests, while insisting he will resolve a conflict of interest that could block him from taking the role of prime minister.

Position on Corporate Empire

Babiš, whose political movement came first in the autumn vote but did not secure a parliamentary majority, declared in a online statement that he would not divest his Agrofert group, which is active in agriculture, food processing, and chemicals.

“I have consistently said I will never sell Agrofert. I have consistently said I will address the ethical issue in accordance with Czech and EU regulations,” Babiš remarked. “This is different from 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 clarify openly how he will eliminate conflicts of interest stemming from his business activities before assuming the role of prime minister.

The national charter “clearly mandates the head of state to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, the presidential administration noted.

The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement said, noting that Pavel was prepared to designate Babiš as premier “immediately” once the matter was resolved.

Business Operations and Regulatory Issues

Babiš's several hundred firms, primarily under the Agrofert group, function in the nation and other central European states, benefiting from millions of euros in domestic and European farming and other grants, as well as government deals.

Under national legislation, cabinet members are barred from obtaining state support or contracts. The ethics watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either sell, decline public contracts, or stay out of government.

Past Term and Present Plans

Babiš affirmed he would “abide by the regulations” if appointed as premier, but declined to detail how in beforehand because the issue was “an highly personal and private affair for me, and journalists will invariably criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over possible ethical issues. He temporarily moved his holdings into trust funds, while keeping some influence 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 insisted he was “taking steps” to prevent a ethical problem, but declined to reveal specifics.

Coalition Agreement and Foreign Policy Implications

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if confirmed, is expected to strengthen the populist movement in central and eastern Europe and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for foreign policy, also demanded that the government agenda add a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to meeting alliance duties.

The head of state has previously stated 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 said it will meet by proposing non-partisan experts.