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Andrej Babiš, the self-proclaimed tycoon that secured victory in last month's Czech election, has declined to offload his extensive corporate assets, while asserting he will address a conflict of interest that could prevent him from assuming the position of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the October vote but did not secure a majority in parliament, declared in a social media post that he would not divest his Agrofert conglomerate, which operates in agriculture, food production, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have consistently stated I will resolve the conflict of interest in accordance with Czech and European laws,” the billionaire commented. “This is different from selling a pastry in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, stated that the elderly political figure must publicly explain how he will eliminate conflicts of interest stemming from his business activities before being appointed premier.

The Czech constitution “clearly mandates the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, Pavel's office noted.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was prepared to designate Babiš as premier “without delay” once the issue was settled.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, primarily under the Agrofert umbrella, function in the Czech Republic and other central European countries, receiving substantial funds in domestic and European farming and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot receiving state support or agreements. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse government deals, or stay out of government.

Past Term and Present Intentions

Babiš said he would “abide by the laws” if appointed as premier, but declined to explain how in advance because the issue was “an extremely sensitive and private affair for me, and journalists 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 temporarily moved his assets into trust funds, while retaining some influence over them.

A court and the European Commission both determined that this did not suffice. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but refused to reveal specifics.

Coalition Deal and Foreign Policy Implications

The billionaire populist has concluded 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 opposed the EU’s environmental policy.

The incoming administration, if confirmed, is expected to strengthen the populist movement in the region and might strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme add a statement on the government’s position on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.

The president has previously stated he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by nominating non-partisan experts.