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Andrej Babiš, the self-styled tycoon who won the recent parliamentary vote, has declined to sell his vast corporate assets, while insisting he will address a conflict of interest that might block him from taking the position of prime minister.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the October vote but did not secure a majority in parliament, declared in a online statement that he would not divest his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with national and European laws,” Babiš commented. “This is different from selling a roll in a bakeshop.”

President's Requirement

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

The Czech constitution “explicitly requires the president to consider the possible emergence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office explained.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement added, stating that Pavel was ready to appoint Babiš as premier “immediately” once the matter was settled.

Business Operations and Regulatory Concerns

Babiš's numerous companies, primarily under the Agrofert umbrella, function in the nation and other regional states, receiving substantial funds in domestic and European farming and other grants, as well as government deals.

Under Czech law, government ministers are barred from obtaining state support or agreements. The anti-corruption organization Transparency International has stated that to avoid a ethical breach, Babiš must either divest, refuse government deals, or not enter public office.

Previous Term and Current Intentions

Babiš said he would “follow the regulations” if selected as prime minister, but did not want to detail how in beforehand because the matter was “an extremely sensitive and personal matter for me, and the media will invariably question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over potential ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but declined to disclose specifics.

Coalition Agreement and International Consequences

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on exiting 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 central and eastern Europe and could strain western support 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 shares responsibility for foreign policy, also requested that the coalition’s programme add a declaration on the official stance on the conflict in Ukraine, including a pledge to meeting alliance duties.

The president has previously said he would not endorse any cabinet candidates who might question the Czech Republic’s international alliances, a condition that the ultra-conservative party has said it will satisfy by nominating independent technocrats.