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Andrej Babiš, the self-styled tycoon that won last month's Czech election, has declined to offload his vast corporate assets, while asserting he will resolve a conflict of interest that might block him from assuming the position of prime minister.

Stance on Corporate Empire

Babiš, whose political movement came first in the autumn vote but lacked a majority in parliament, stated in a social media post that he would not divest his Agrofert group, which is active in farming, food processing, and chemicals.

“I have consistently stated I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in compliance with national and European laws,” Babiš remarked. “This is not like selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove conflicts of interest arising from his business activities before assuming the role of premier.

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, Pavel's office noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement added, stating that Pavel was prepared to appoint Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, mostly under the Agrofert group, operate in the nation and other central European countries, receiving substantial funds in domestic and European agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members are barred from obtaining public aid or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, refuse government deals, or stay out of public office.

Previous Tenure and Current Intentions

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

During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over possible conflicts of interest. He placed his holdings into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to reveal specifics.

Coalition Agreement and International Implications

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The incoming administration, if approved, is likely 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 requested that the government agenda include a statement on the official stance on Russia’s war in Ukraine, including a commitment to fulfilling alliance duties.

The president has previously stated he would not approve any cabinet candidates who might question the Czech Republic’s international alliances, a condition that the ultra-conservative party has said it will meet by nominating non-partisan experts.