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Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent parliamentary vote, has refused to sell his vast business interests, while asserting he will address a conflict of interest that might block him from assuming the role of head of government.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the October election but did not secure a majority in parliament, declared in a online statement that he will not divest his Agrofert conglomerate, which is active in agriculture, food production, and chemicals.

“I have consistently stated I will never sell Agrofert. I have consistently said I will resolve the conflict of interest in accordance with national and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate conflicts of interest stemming from his business activities before assuming the role of premier.

The national charter “explicitly requires the president to consider the possible emergence of a ethical issue and the ways to address it” when appointing cabinet members, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the announcement added, stating that Pavel was ready to designate Babiš as premier “without delay” once the matter was settled.

Business Operations and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert group, operate in the Czech Republic and other central European states, benefiting from millions of euros in domestic and European agricultural and other grants, as well as public contracts.

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

Past Term and Current Intentions

Babiš affirmed he would “follow the laws” if appointed as premier, but did not want to detail how in beforehand because the matter was “an highly personal and personal matter for me, and journalists will invariably criticise me anyway”.

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 temporarily moved his assets into fiduciary arrangements, while keeping some influence over them.

A court and the European Commission both determined that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but refused to disclose specifics.

Coalition Agreement and Foreign Policy Consequences

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The incoming administration, if approved, is likely to strengthen the populist bloc in the region and could challenge backing from Western nations 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 international relations, also demanded that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.

The president has previously stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has said it will satisfy by proposing independent technocrats.