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Andrej Babiš, the self-styled tycoon who secured victory in the recent Czech election, has declined to offload his extensive corporate assets, while asserting he will address a ethical dilemma that might prevent him from taking the role of prime minister.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a parliamentary majority, stated in a online statement that he will not sell his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

“I have consistently said I will never sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with Czech and EU regulations,” the billionaire remarked. “This is not like selling a roll in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the elderly populist must publicly explain how he will eliminate conflicts of interest stemming from his corporate dealings before being appointed prime minister.

The Czech constitution “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, Pavel's office noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the announcement said, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was settled.

Business Operations and Legal Issues

Babiš's numerous companies, primarily under the Agrofert umbrella, operate in the Czech Republic and other central European countries, receiving millions of euros in national and EU farming and other grants, as well as public contracts.

Under Czech law, government ministers are barred from obtaining public aid or agreements. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or stay out of government.

Past Tenure and Present Intentions

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

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential conflicts of interest. He placed his assets into trust funds, while retaining certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš stated last month that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but declined to reveal specifics.

Coalition Agreement and International Implications

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if confirmed, is likely to bolster the populist bloc in central and eastern Europe and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for international relations, also requested that the coalition’s programme add a declaration on the official stance on the conflict in Ukraine, with a commitment to meeting alliance duties.

The president has earlier said he would not approve any cabinet candidates who might question the nation's EU and Nato commitments, a condition that the far-right SPD has indicated it will satisfy by nominating independent technocrats.