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Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent Czech election, has refused to sell his extensive business interests, while insisting he will address a conflict of interest that could block him from taking the role of head of government.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn election but did not secure a majority in parliament, stated in a social media post that he will not sell his Agrofert group, which operates in farming, food processing, and chemical industries.

“I have consistently said I will not sell Agrofert. I have repeatedly said I will resolve the conflict of interest in compliance with Czech and European laws,” the billionaire remarked. “This is not like selling a pastry in a bakery.”

President's Demand

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will eliminate ethical conflicts stemming from his business activities before being appointed prime minister.

The Czech constitution “explicitly requires the president to consider the potential occurrence of a conflict of interest and the ways to address it” when appointing cabinet members, the presidential administration noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement said, stating that Pavel was ready to designate Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, function in the nation and other central European countries, receiving millions of euros in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members 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, refuse public contracts, or not enter public office.

Past Term and Current Plans

Babiš affirmed he would “follow the regulations” if appointed as premier, but declined to explain how in advance because the issue was “an extremely sensitive and private affair for me, and the media will always question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible ethical issues. He temporarily moved his assets into trust funds, while keeping certain control over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but declined to reveal specifics.

Coalition Agreement and International Implications

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if approved, is likely to strengthen the populist movement in central and eastern Europe and might challenge western support for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also demanded that the coalition’s programme include a declaration on the government’s position on Russia’s war in Ukraine, with a commitment to meeting alliance duties.

The president 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 indicated it will meet by nominating non-partisan experts.