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Andrej Babiš, the self-proclaimed tycoon that won last month's Czech election, has declined to offload his extensive business interests, while asserting he will resolve a conflict of interest that might block him from taking the position of head of government.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn vote but lacked a parliamentary majority, declared in a social media post that he would not sell his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

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

President's Demand

The head of state, Petr Pavel, announced that the elderly political figure must clarify openly how he will remove ethical conflicts stemming from his business activities before being appointed premier.

The national charter “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 “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, stating that Pavel was ready to appoint Babiš as premier “immediately” once the issue was settled.

Business Operations and Regulatory Concerns

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

Under Czech law, government ministers cannot obtaining public aid or contracts. The ethics organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or not enter public office.

Previous Tenure and Present Intentions

Babiš said he would “abide by the regulations” if selected as premier, but did not want to explain how in beforehand because the matter was “an highly personal and private affair for me, and journalists will always criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over potential conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but declined to reveal details.

Coalition Agreement and International Consequences

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian 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 environmental policy.

The incoming administration, if confirmed, is expected to bolster the populist bloc in central and eastern Europe and might challenge western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, with a pledge to fulfilling Nato obligations.

The president has previously stated he would not approve any ministerial nominees who might question the nation's EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by proposing non-partisan experts.