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Andrej Babiš, the self-styled tycoon who secured victory in last month's Czech election, has refused to offload his extensive corporate assets, 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 ANO party came first in the autumn vote but did not secure a majority in parliament, declared in a online statement that he would not divest his Agrofert group, which operates in agriculture, food processing, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in accordance with Czech and European laws,” Babiš remarked. “This is different from selling a roll in a bakery.”

President's Demand

The Czech president, Petr Pavel, stated that the elderly political figure must clarify openly how he will eliminate ethical conflicts arising from his business activities before being appointed prime minister.

The national charter “clearly mandates the head of state to take into account the possible emergence of a conflict of interest and the ways to address it” when selecting cabinet members, Pavel's office noted.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the statement said, noting that Pavel was ready to appoint Babiš as premier “without delay” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, operate in the Czech Republic and other central European states, receiving millions of euros in national and EU agricultural and other grants, as well as government deals.

Under Czech law, cabinet members are barred from receiving state support or agreements. The ethics organization Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline government deals, or stay out of public office.

Previous Tenure and Current Plans

Babiš said he would “follow the laws” if selected as prime minister, but did not want to detail how in beforehand because the matter was “an highly personal and personal matter for me, and the media will always question me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible conflicts of interest. He placed his assets into trust funds, while keeping certain control over them.

A court and the European Commission both determined that this did not suffice. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but declined to reveal details.

Governing Deal and International Implications

The billionaire populist has signed 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 mainly campaigned against the EU’s Green Deal.

The new government, if confirmed, is likely 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 confirm of the nation's backing.

Pavel, who as head of state has a role for foreign policy, also demanded that the government agenda include a statement on the official stance on the conflict in Ukraine, including a pledge to meeting alliance duties.

The head of state has previously said he would not approve any cabinet candidates who might question the nation's international alliances, a condition that the far-right SPD has indicated it will meet by nominating independent technocrats.