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Andrej Babiš, the self-proclaimed tycoon that secured victory in last month's Czech election, has declined to offload his vast business interests, while insisting he will address a conflict of interest that might prevent him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose ANO party came first in the October vote but did not secure a majority in parliament, stated in a social media post that he will not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

“I have consistently stated I will not sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with Czech and European laws,” Babiš commented. “This is not like selling a roll in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the elderly populist must clarify openly how he will eliminate ethical conflicts arising from his business activities before assuming the role of prime minister.

The national charter “explicitly requires the president to consider the potential occurrence of a ethical issue and the ways to address it” when appointing government ministers, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the announcement said, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Business Operations and Legal Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional countries, receiving substantial funds in national and EU farming and other grants, as well as public contracts.

Under Czech law, government ministers are barred from receiving state support or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse public contracts, or not enter government.

Previous Term and Present Intentions

Babiš affirmed he would “follow the laws” if appointed as premier, but declined to detail how in beforehand because the matter was “an highly personal and personal matter for me, and the media will invariably criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over potential conflicts of interest. He placed his assets into trust funds, while keeping some influence over them.

A court and the European Commission both ruled that this did not suffice. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but refused to disclose specifics.

Coalition Agreement and Foreign Policy Consequences

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if approved, is likely to bolster the populist bloc in the region and might strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for international relations, also demanded that the government agenda include a declaration on the government’s position on the conflict in Ukraine, with a commitment to meeting Nato obligations.

The head of state has earlier stated he would not endorse any ministerial nominees who might question the nation's EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will satisfy by proposing independent technocrats.