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Andrej Babiš, the self-styled tycoon who won last month's Czech election, has refused to offload his extensive business interests, while insisting he will resolve a conflict of interest that could block him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn vote but did not secure a parliamentary majority, 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 never sell Agrofert. I have repeatedly said I will address the ethical issue in compliance with Czech and European laws,” Babiš commented. “This is not like selling a roll in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove ethical conflicts arising from his corporate dealings before being appointed premier.

The Czech constitution “clearly mandates the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when appointing government ministers, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, stating that Pavel was prepared to designate Babiš as premier “immediately” once the matter was resolved.

Corporate Activities and Legal Issues

Babiš's several hundred firms, mostly under the Agrofert group, function in the Czech Republic and other regional states, receiving substantial funds in domestic and European farming and other grants, as well as government deals.

Under Czech law, cabinet members cannot obtaining public aid or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline public contracts, or stay out of public office.

Previous Tenure and Current Plans

Babiš said he would “follow the laws” if appointed as premier, but declined to detail how in advance because the issue was “an highly personal and personal matter for me, and the media will invariably question 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 temporarily moved his assets into fiduciary arrangements, while keeping certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but declined to disclose specifics.

Coalition Deal and International Consequences

The billionaire populist has signed a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if approved, is likely to bolster the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

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

The head of state has earlier said he would not endorse 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 meet by nominating independent technocrats.