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Andrej Babiš, the self-styled tycoon that won last month's parliamentary vote, has declined to offload his extensive business interests, while insisting he will resolve a conflict of interest that could block him from taking the role of prime minister.

Position on Corporate Empire

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

“I have consistently said I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in compliance with Czech and European laws,” Babiš commented. “This is different from selling a roll in a bakery.”

President's Demand

The Czech president, Petr Pavel, stated that the elderly political figure must publicly explain how he will eliminate conflicts of interest stemming from his business activities before assuming the role of prime minister.

The national charter “clearly mandates the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, Pavel's office explained.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement said, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was settled.

Business Operations and Legal Concerns

Babiš's numerous firms, mostly under the Agrofert group, operate in the Czech Republic and other central European countries, receiving substantial funds in national and EU farming and other grants, as well as public contracts.

Under national legislation, government ministers are barred from obtaining public aid or contracts. The anti-corruption organization Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, decline government deals, or stay out of government.

Previous Tenure and Current Plans

Babiš said he would “follow the regulations” if selected as prime minister, but did not want to detail how in advance because the matter was “an extremely sensitive and personal matter for me, and the media will always question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over potential conflicts of interest. He placed his holdings into trust funds, while retaining certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but declined to reveal details.

Coalition Deal and International Implications

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

The incoming administration, if approved, is expected to strengthen the populist movement in the region and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s leader, 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 include a declaration on the official stance on the conflict in Ukraine, including a pledge to meeting alliance duties.

The president has previously stated he would not endorse any ministerial nominees who might doubt the nation's international alliances, a requirement that the far-right SPD has indicated it will satisfy by nominating non-partisan experts.