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

Position on Corporate Empire

Babiš, whose ANO party came first in the autumn election but did not secure a parliamentary majority, stated in a online statement that he would not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.

“I have consistently said I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in accordance with Czech and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakeshop.”

Head of State's Requirement

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

The national charter “clearly mandates the president to consider the possible emergence of a conflict of interest and the ways to address it” when selecting cabinet members, Pavel's office explained.

The president “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, stating that Pavel was ready to designate Babiš as prime minister “without delay” once the matter was settled.

Business Operations and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the nation and other regional states, benefiting from substantial funds in national and EU farming and other grants, as well as government deals.

Under Czech law, cabinet members cannot receiving state support or agreements. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, refuse government deals, or stay out of government.

Past Tenure and Current Intentions

Babiš said 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 the media will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple court cases 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 EU executive both ruled that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but declined to disclose specifics.

Governing Deal and Foreign Policy Implications

The billionaire populist has signed a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if approved, is likely to strengthen the populist movement in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state has a role for foreign policy, also requested that the coalition’s programme include 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 approve any ministerial nominees who might doubt the Czech Republic’s international alliances, a condition that the far-right SPD has indicated it will satisfy by nominating independent technocrats.