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Andrej Babiš, the self-proclaimed tycoon who won last month's parliamentary vote, has refused to offload his extensive business interests, while asserting he will address a conflict of interest that might block him from taking the role of head of government.

Stance 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 conglomerate, which is active in agriculture, food processing, and chemical industries.

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

Head of State's Demand

The Czech president, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts stemming from his business activities before assuming the role of premier.

The national charter “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the ways to address it” when appointing cabinet members, the presidential administration noted.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, noting that Pavel was ready to designate Babiš as premier “without delay” once the matter was settled.

Business Operations and Legal Concerns

Babiš's several hundred firms, mostly under the Agrofert umbrella, function in the nation and other regional countries, benefiting from substantial funds in domestic and European farming and other grants, as well as government deals.

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

Past Term and Current Plans

Babiš said he would “abide by the laws” if selected as premier, but did not want to detail how in advance because the matter was “an extremely sensitive and private affair for me, and the media will invariably question me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over possible conflicts of interest. He placed his assets into trust funds, while retaining some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to disclose details.

Governing Deal and International Consequences

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if approved, is likely to bolster the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, including a commitment to meeting Nato obligations.

The president has previously said he would not endorse any cabinet candidates who might question the Czech Republic’s international alliances, a condition that the ultra-conservative party has said it will meet by proposing non-partisan experts.