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Andrej Babiš, the self-proclaimed tycoon who won last month's parliamentary vote, has declined to offload his vast corporate assets, while asserting he will resolve a conflict of interest that could prevent him from assuming the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party came first in the autumn vote but lacked a parliamentary majority, declared in a social media post that he would not sell his Agrofert group, which operates in agriculture, food production, and chemicals.

“I have consistently stated I will not sell Agrofert. I have consistently stated I will address the ethical issue in compliance with Czech and EU regulations,” the billionaire commented. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will remove ethical conflicts arising from his corporate dealings before being appointed premier.

The national charter “clearly mandates the head of state to take into account the possible emergence of a ethical issue and the ways to address it” when selecting cabinet members, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was resolved.

Business Operations and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert group, function in the Czech Republic and other central European states, receiving substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members cannot receiving public aid or contracts. The ethics watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, decline government deals, or not enter public office.

Previous Tenure and Current Plans

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

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but refused to disclose details.

Coalition Agreement and Foreign Policy Consequences

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a public vote 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 central and eastern Europe and might strain western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for foreign policy, also requested that the government agenda add a declaration on the official stance on the conflict in Ukraine, including a pledge to fulfilling Nato obligations.

The head of state has earlier said he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has said it will satisfy by proposing non-partisan experts.