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

Stance on Business Holdings

Babiš, whose political movement came first in the October election but lacked a majority in parliament, stated in a social media post that he will not divest his Agrofert conglomerate, which is active in farming, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in compliance with Czech and European laws,” the billionaire commented. “This is different from selling a pastry in a bakeshop.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the elderly populist must clarify openly how he will eliminate conflicts of interest arising from his corporate dealings before being appointed prime minister.

The Czech constitution “explicitly requires the head of state to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, Pavel's office explained.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, noting that Pavel was prepared to appoint Babiš as prime minister “immediately” once the matter was settled.

Corporate Activities and Legal Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, function in the nation and other regional states, receiving millions of euros in national and EU farming and other grants, as well as public contracts.

Under Czech law, cabinet members cannot receiving public aid or contracts. The ethics watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, refuse government deals, or not enter public office.

Previous Term and Current Plans

Babiš affirmed he would “follow the regulations” if selected as prime minister, but declined to explain how in beforehand because the matter was “an extremely sensitive and personal matter for me, and journalists will always question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over potential conflicts of interest. He placed his holdings into trust funds, while keeping certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed last month that he was again the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to reveal details.

Coalition Agreement and International Implications

The wealthy politician has signed a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

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

Pavel, who as president has a role for international relations, also demanded that the coalition’s programme include a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.

The head of state has earlier said he would not approve any cabinet candidates who might doubt the nation's international alliances, a requirement that the ultra-conservative party has said it will satisfy by nominating non-partisan experts.