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Andrej Babiš, the self-proclaimed tycoon that secured victory in 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 assuming the position of head of government.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the October election but lacked a parliamentary majority, declared in a online statement that he would not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with national and European laws,” the billionaire commented. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the elderly populist must publicly explain 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 possible emergence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was ready to appoint Babiš as premier “immediately” once the issue was settled.

Business Operations and Legal Issues

Babiš's numerous companies, mostly under the Agrofert group, function in the Czech Republic and other regional countries, receiving millions of euros in national and EU farming and other subsidies, as well as government deals.

Under national legislation, cabinet members cannot receiving public aid or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or stay out of public office.

Past Tenure and Present Plans

Babiš affirmed he would “abide by 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 journalists will invariably question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over possible ethical issues. He temporarily moved his assets into trust funds, while retaining certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš stated last month that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but declined to reveal specifics.

Governing Deal and International Consequences

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The new government, if confirmed, is expected to bolster the populist bloc in central and eastern Europe and could challenge backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for foreign policy, also requested that the government agenda include a declaration on the official stance on the conflict in Ukraine, including a pledge to meeting alliance duties.

The president has earlier said he would not approve any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has said it will satisfy by nominating non-partisan experts.