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Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent Czech election, has refused to sell his extensive business interests, while insisting he will address a conflict of interest that might prevent him from assuming the role of prime minister.

Stance on Business Holdings

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

“I have consistently stated I will not sell Agrofert. I have repeatedly said I will address the conflict of interest in compliance with Czech and EU regulations,” the billionaire commented. “This is not like selling a roll in a bakery.”

President's Requirement

The head of state, Petr Pavel, stated that the elderly political figure must publicly explain how he will remove ethical conflicts arising from his business activities before assuming the role of premier.

The Czech constitution “clearly mandates the head of state to take into account the possible emergence of a ethical issue and the ways to address it” when appointing government ministers, the presidential administration noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement said, noting that Pavel was prepared to appoint Babiš as premier “immediately” once the issue was settled.

Business Operations and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, operate in the nation and other central European countries, receiving millions of euros in national and EU agricultural and other subsidies, as well as government deals.

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse public contracts, or stay out of government.

Previous Tenure and Current Intentions

Babiš affirmed he would “follow the laws” if selected as premier, but declined to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will invariably criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

A court and the EU executive both determined that this was insufficient. Babiš confirmed recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but declined to reveal specifics.

Coalition Agreement and Foreign Policy Consequences

The billionaire populist has signed a governing pact 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 mainly campaigned against the EU’s environmental policy.

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

Pavel, who as head of state shares responsibility for international relations, also demanded that the coalition’s programme add a statement on the official stance on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The president has earlier stated he would not approve any cabinet candidates who might doubt the nation's international alliances, a condition that the far-right SPD has indicated it will satisfy by proposing independent technocrats.