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Andrej Babiš, the self-proclaimed tycoon who won last month's Czech election, has declined to offload his extensive business interests, while asserting he will resolve a conflict of interest that could block him from taking the role of prime minister.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the October election but did not secure a majority in parliament, declared in a social media post that he would not divest his Agrofert group, which operates in agriculture, food processing, and chemicals.

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

Head of State's Demand

The Czech president, Petr Pavel, stated that the elderly political figure must publicly explain how he will remove ethical conflicts stemming from his corporate dealings before assuming the role of premier.

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

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was prepared to designate Babiš as prime minister “immediately” once the matter was settled.

Business Operations and Legal Issues

Babiš's numerous firms, primarily under the Agrofert group, operate in the nation and other regional states, receiving millions of euros in domestic and European agricultural and other subsidies, as well as public contracts.

Under national legislation, cabinet members are barred from receiving state support or contracts. The ethics organization Transparency International has stated that to avoid a ethical breach, Babiš must either sell, decline public contracts, or stay out of public office.

Past Term and Present Plans

Babiš affirmed he would “abide by the laws” if selected as prime minister, but declined to detail how in beforehand because the issue was “an highly personal and private affair for me, and the media will invariably question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential conflicts of interest. He placed his assets into fiduciary arrangements, while keeping some influence over them.

A court 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 maintained he was “implementing measures” to prevent a conflict of interest, but declined to disclose specifics.

Governing Agreement and Foreign Policy Consequences

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if approved, is likely to strengthen the populist movement in the region and could strain western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for international relations, also requested that the government agenda add a statement on the official stance on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has earlier said he would not approve any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has indicated it will satisfy by proposing independent technocrats.