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Andrej Babiš, the self-styled tycoon who won the recent parliamentary vote, has declined to sell his vast corporate assets, while insisting he will address a conflict of interest that might prevent him from taking the position of head of government.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a parliamentary majority, declared in a online statement that he will not sell his Agrofert conglomerate, which operates in farming, food processing, and chemical industries.

“I have consistently said I will never sell Agrofert. I have consistently stated I will resolve the ethical issue in compliance with national and EU regulations,” Babiš commented. “This is different from selling a roll in a bakeshop.”

President's Requirement

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

The national charter “explicitly requires the head of state to consider the possible emergence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, the presidential administration noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was ready to appoint Babiš as premier “without delay” once the matter was resolved.

Corporate Activities and Legal Issues

Babiš's several hundred firms, mostly under the Agrofert group, operate in the Czech Republic and other central European countries, receiving millions of euros in domestic and European farming and other subsidies, as well as public contracts.

Under national legislation, government ministers are barred from receiving state support or contracts. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, refuse government deals, or stay out of government.

Past Term and Current Plans

Babiš said he would “abide by the regulations” if appointed as prime minister, but did not want to detail how in advance because the issue was “an extremely sensitive and private affair for me, and journalists will invariably criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over possible conflicts of interest. He temporarily moved his assets into trust funds, while retaining some influence over them.

A judicial body 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 avoid a conflict of interest, but refused to reveal specifics.

Coalition Deal and International Implications

The billionaire populist has concluded a governing pact 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 primarily opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to strengthen the populist bloc in the region and might strain western support for Ukraine – even though Babiš has contacted 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 official stance on the conflict in Ukraine, including a commitment to meeting Nato obligations.

The president has earlier said he would not approve any cabinet candidates who might doubt the nation's international alliances, a requirement that the far-right SPD has indicated it will satisfy by nominating independent technocrats.