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Andrej Babiš, the self-proclaimed tycoon who won last month's Czech election, has declined to sell his vast business interests, while asserting he will address a conflict of interest that might prevent him from assuming the position of prime minister.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn vote but did not secure a parliamentary majority, declared in a online statement that he will not sell his Agrofert conglomerate, which is active in farming, food production, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly said I will address the ethical issue in compliance with Czech and European laws,” the billionaire remarked. “This is different from selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the elderly populist must clarify openly how he will remove ethical conflicts arising from his corporate dealings before assuming the role of premier.

The Czech constitution “clearly mandates the president to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, Pavel's office explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, stating that Pavel was ready to designate Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European countries, receiving substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, government ministers are barred from obtaining public aid or agreements. The anti-corruption organization Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, decline public contracts, or not enter public office.

Previous Term and Current Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but did not want to detail how in advance because the matter was “an extremely sensitive and private affair for me, and the media will always question me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over possible conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.

A court and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but refused to disclose specifics.

Coalition Deal and Foreign Policy Consequences

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

The incoming administration, if approved, is expected to strengthen the populist movement in central and eastern Europe and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for international relations, also demanded that the government agenda add a declaration on the official stance on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The head of state has previously stated he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by nominating non-partisan experts.