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Andrej Babiš, the self-styled tycoon that won last month's Czech election, has refused to sell his vast corporate assets, while insisting he will address a conflict of interest that could prevent him from taking the role of head of government.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a parliamentary majority, stated in a online statement that he would not sell his Agrofert group, which operates in farming, food processing, and chemical industries.

“I have consistently said I will never sell Agrofert. I have consistently said I will resolve the conflict of interest in accordance with national and European laws,” the billionaire remarked. “This is different from selling a pastry in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, announced that the elderly populist must publicly explain how he will eliminate conflicts of interest arising from his business activities before assuming the role of premier.

The national charter “clearly mandates the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

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

Business Operations and Regulatory Concerns

Babiš's several hundred firms, primarily under the Agrofert group, operate in the nation and other central European countries, benefiting from substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members are barred from receiving state support or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, decline government deals, or not enter public office.

Previous Term and Present Intentions

Babiš affirmed he would “abide by the regulations” if appointed as prime minister, but declined to explain how in beforehand because the matter was “an extremely sensitive and personal matter for me, and journalists will always criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over potential ethical issues. He placed his holdings into trust funds, while retaining some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to disclose details.

Coalition Deal and Foreign Policy Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if confirmed, is expected to strengthen the populist movement in the region and could strain western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, with 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 requirement that the ultra-conservative party has indicated it will meet by nominating independent technocrats.