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Andrej Babiš, the self-proclaimed tycoon that won the recent parliamentary vote, has declined to sell his extensive corporate assets, while insisting he will address a conflict of interest that might prevent him from assuming the role of prime minister.

Stance on Corporate Empire

Babiš, whose political movement came first in the October vote but lacked a parliamentary majority, declared in a online statement that he will not divest his Agrofert group, which operates in agriculture, food production, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have consistently stated I will resolve the ethical issue in compliance with national and EU regulations,” the billionaire commented. “This is not like selling a roll in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will remove ethical conflicts stemming from his business activities before being appointed 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 appointing cabinet members, Pavel's office noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement said, stating that Pavel was ready to designate Babiš as premier “immediately” once the issue was resolved.

Business Operations and Legal Issues

Babiš's numerous companies, primarily under the Agrofert umbrella, function in the Czech Republic and other central European states, receiving substantial funds in domestic and European agricultural and other grants, as well as government deals.

Under national legislation, government ministers are barred from obtaining public aid or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, refuse government deals, or not enter public office.

Past Tenure and Current Intentions

Babiš said he would “follow the laws” if selected as premier, but did not want to explain how in beforehand because the issue was “an extremely sensitive and personal matter for me, and journalists will invariably question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over possible ethical issues. He placed his assets into fiduciary arrangements, while retaining some influence over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš confirmed recently that he was again the sole owner of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but declined to disclose specifics.

Coalition Deal and International Implications

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if approved, is likely to bolster the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, with a commitment to meeting alliance duties.

The president has earlier said he would not approve any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will meet by nominating independent technocrats.