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Andrej Babiš, the self-styled tycoon that secured victory in the recent parliamentary vote, has declined to sell his vast business interests, while asserting he will resolve a conflict of interest that might prevent him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the October vote but did not secure a majority in parliament, declared in a social media post that he will not divest his Agrofert group, which is active in agriculture, food production, and chemical industries.

“I have consistently stated I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with national and EU regulations,” Babiš remarked. “This is not like selling a roll in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, stated that the elderly populist must clarify openly how he will eliminate ethical conflicts arising from his corporate dealings before being appointed premier.

The national charter “clearly mandates the president to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was ready to designate Babiš as prime minister “immediately” once the issue was resolved.

Business Operations and Regulatory Concerns

Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional countries, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as public contracts.

Under national legislation, government ministers are barred from obtaining state support or agreements. The anti-corruption organization Transparency International has stated that to avoid a ethical breach, Babiš must either sell, refuse government deals, or not enter public office.

Past Term and Present Plans

Babiš said he would “follow the regulations” if appointed as premier, but did not want to explain how in beforehand because the matter was “an extremely sensitive and personal matter for me, and journalists will invariably criticise me anyway”.

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

A court and the EU executive both determined that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but refused to reveal details.

Governing Deal and Foreign Policy Implications

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian 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 confirmed, is likely to bolster the populist bloc in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state has a role for international relations, also requested that the government agenda add a statement on the official stance on the conflict in Ukraine, including a commitment to fulfilling Nato obligations.

The head of state has earlier said he would not endorse any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has said it will satisfy by proposing non-partisan experts.