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Andrej Babiš, the self-styled tycoon who secured victory in the recent parliamentary vote, has refused to sell his vast 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 came first in the October vote but did not secure a majority in parliament, stated in a social media post that he would not divest his Agrofert conglomerate, which is active in agriculture, food processing, and chemicals.

“I have consistently said I will never sell Agrofert. I have consistently stated I will address the ethical issue in compliance with national and EU regulations,” Babiš commented. “This is different from selling a roll in a bakeshop.”

Head of State's Requirement

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 being appointed prime minister.

The Czech constitution “clearly mandates the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, Pavel's office noted.

The president “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the statement said, noting that Pavel was ready to designate Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's numerous companies, primarily under the Agrofert group, function in the Czech Republic and other regional states, receiving substantial funds in domestic and European farming and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot receiving public aid or contracts. The ethics watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse government deals, or not enter government.

Previous Term and Current Intentions

Babiš said he would “follow the laws” if appointed as premier, but declined to detail how in beforehand because the issue was “an highly personal and personal matter for me, and the media will invariably criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over possible conflicts of interest. He placed his assets into trust funds, while keeping certain control over them.

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

Governing Deal and Foreign Policy Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The new government, if approved, is expected to bolster the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for foreign policy, also demanded that the government agenda include a declaration on the government’s position on the conflict in Ukraine, including a pledge to fulfilling alliance duties.

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 satisfy by nominating non-partisan experts.