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

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October vote but did not secure a parliamentary majority, stated in a online statement that he would not divest his Agrofert conglomerate, which is active in agriculture, food processing, and chemical industries.

“I have consistently stated I will not sell Agrofert. I have consistently stated I will address the ethical issue in accordance with national and EU regulations,” the billionaire commented. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

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

The Czech constitution “explicitly requires the head of state to take into account the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, Pavel's office explained.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was ready to designate Babiš as premier “without delay” once the issue was resolved.

Business Operations and Legal Concerns

Babiš's several hundred companies, mostly under the Agrofert group, function in the nation and other central European countries, receiving substantial funds in domestic and European farming and other grants, as well as government deals.

Under Czech law, government ministers are barred from obtaining public aid or agreements. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline government deals, or stay out of public office.

Past Tenure and Current Plans

Babiš said he would “follow the regulations” if selected as premier, but declined to explain how in advance because the issue was “an extremely sensitive and personal matter for me, and the media will invariably question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over possible ethical issues. He placed his assets into fiduciary arrangements, while retaining certain control over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but refused to disclose specifics.

Coalition Agreement and Foreign Policy Consequences

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated 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 likely to strengthen the populist movement in central and eastern Europe and might challenge western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for foreign policy, also demanded that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, including a commitment to meeting alliance duties.

The head of state has earlier said he would not approve any ministerial nominees who might doubt the nation's international alliances, a requirement that the ultra-conservative party has said it will satisfy by nominating independent technocrats.