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Andrej Babiš, the self-styled tycoon that won last month's parliamentary vote, has refused to sell his extensive business interests, while insisting he will address a conflict of interest that might block him from assuming the role of prime minister.

Position on Business Holdings

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

“I have consistently stated I will never sell Agrofert. I have consistently stated I will address the ethical issue in accordance with national and European laws,” the billionaire remarked. “This is not like selling a roll in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the elderly populist must clarify openly how he will remove conflicts of interest stemming from his business activities before being appointed premier.

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration noted.

The head of state “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, primarily under the Agrofert umbrella, operate in the nation and other regional countries, receiving millions of euros in national and EU farming and other grants, as well as public contracts.

Under national legislation, government ministers are barred from receiving public aid or contracts. The anti-corruption organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or not enter government.

Previous Tenure and Current Plans

Babiš said he would “abide by the laws” if selected as prime minister, but did not want to explain how in beforehand because the matter was “an highly personal and private affair for me, and the media will invariably criticise me anyway”.

During his initial tenure as premier, 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 keeping some influence over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš stated last month that he was again the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to reveal details.

Governing Agreement 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 public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if approved, is expected to strengthen the populist bloc in central and eastern Europe and might strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for foreign policy, also demanded that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, with a commitment to meeting alliance duties.

The head of state has previously said he would not approve any cabinet candidates who might question the nation's EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will satisfy by nominating non-partisan experts.