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Andrej Babiš, the self-proclaimed tycoon that secured victory in last month's parliamentary vote, has refused to sell 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.

Position on Corporate Empire

Babiš, whose ANO party came first in the October vote but did not secure a majority in parliament, stated in a online statement that he would not sell his Agrofert conglomerate, which operates in farming, food production, and chemical industries.

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

Head of State's Demand

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove conflicts of interest stemming from his corporate dealings before assuming the role of prime minister.

The Czech constitution “clearly mandates the head of state to take into account the possible emergence of a conflict of interest and the ways to address it” when selecting government ministers, Pavel's office explained.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, stating that Pavel was ready to appoint Babiš as premier “without delay” once the matter was resolved.

Corporate Activities and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert group, operate in the Czech Republic and other regional states, receiving millions of euros in domestic and European farming and other grants, as well as government deals.

Under national legislation, government ministers cannot receiving public aid or agreements. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or not enter public office.

Past Tenure and Current Plans

Babiš affirmed he would “follow the laws” if selected as premier, but did not want to detail how in beforehand because the issue was “an highly personal and personal matter for me, and journalists will invariably criticise me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an European inquiry over possible ethical issues. He placed his holdings into trust funds, while retaining certain control over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but declined to disclose specifics.

Coalition Deal and International Consequences

The wealthy politician has signed a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a public vote on leaving 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 bolster the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also requested that the coalition’s programme include a declaration on the government’s position on the conflict in Ukraine, including a pledge to meeting Nato obligations.

The president has earlier said he would not endorse any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by proposing independent technocrats.