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Andrej Babiš, the self-styled tycoon who won last month's parliamentary vote, has refused to sell his vast corporate assets, while insisting he will address a conflict of interest that could prevent him from assuming the position of prime minister.

Position on Corporate Empire

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

“I have consistently said I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in accordance with national and European laws,” the billionaire commented. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove conflicts of interest arising from his business activities before being appointed premier.

The national charter “explicitly requires the head of state to consider the possible emergence of a ethical issue and the ways to address it” when appointing government ministers, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the statement added, stating that Pavel was prepared to designate Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert umbrella, function in the Czech Republic and other central European countries, receiving substantial funds in national and EU agricultural and other subsidies, as well as public contracts.

Under Czech law, government ministers are barred from receiving public aid or agreements. The anti-corruption organization Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse public contracts, or stay out of government.

Previous Term and Present Intentions

Babiš affirmed he would “follow the regulations” if selected as prime minister, but did not want to explain how in beforehand because the matter was “an extremely sensitive and private affair for me, and the media will always criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over potential conflicts of interest. He placed his holdings into fiduciary arrangements, 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 exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but refused to reveal specifics.

Coalition Deal and International Implications

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian 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 environmental policy.

The new government, if confirmed, is likely to strengthen the populist bloc in central and eastern Europe and could challenge western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for foreign policy, also requested that the coalition’s programme add a statement on the official stance on Russia’s war in Ukraine, including a commitment to meeting alliance duties.

The head of state has previously said he would not endorse any ministerial nominees who might question the nation's international alliances, a condition that the ultra-conservative party has said it will satisfy by proposing independent technocrats.