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Andrej Babiš, the self-styled tycoon who secured victory in last month's parliamentary vote, has declined to offload his extensive business interests, while asserting he will resolve a conflict of interest that might prevent him from taking the position of prime minister.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the October election but did not secure a majority in parliament, stated in a online statement that he will not divest his Agrofert group, which is active in farming, food production, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with Czech and European laws,” the billionaire remarked. “This is not like selling a roll in a bakery.”

President's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will eliminate ethical conflicts stemming from his business activities before being appointed premier.

The Czech constitution “explicitly requires the president to take into account the possible emergence of a ethical issue and the ways to address it” when selecting government ministers, the presidential administration explained.

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

Corporate Activities and Legal Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the Czech Republic and other regional states, receiving millions of euros in domestic and European agricultural and other subsidies, as well as government deals.

Under national legislation, cabinet members cannot obtaining public aid or agreements. The anti-corruption organization Transparency International has stated that to avoid a ethical breach, Babiš must either divest, refuse public contracts, or not enter public office.

Previous Tenure and Current Plans

Babiš affirmed he would “follow the regulations” if appointed as premier, but did not want to explain how in beforehand because the matter was “an highly personal and private affair for me, and the media will always question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over possible ethical issues. He placed his holdings into trust funds, while keeping certain control over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš stated recently 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 details.

Coalition Agreement and International Consequences

The billionaire populist has signed a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a referendum 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 expected to bolster the populist movement in central and eastern Europe and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for foreign policy, also demanded that the coalition’s programme include a declaration on the official stance on Russia’s war in Ukraine, including a pledge to fulfilling alliance duties.

The head of state has earlier said he would not approve any ministerial nominees who might question the nation's EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.