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Andrej Babiš, the self-proclaimed tycoon who won last month's parliamentary vote, has declined to offload his vast corporate assets, while asserting he will address a conflict of interest that could 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 lacked a majority in parliament, declared in a online statement that he would not sell his Agrofert group, which is active in farming, food processing, and chemical industries.

“I have consistently stated I will not sell Agrofert. I have repeatedly said I will resolve the conflict of interest in compliance with national and European laws,” Babiš commented. “This is different from selling a pastry in a bakery.”

President's Demand

The Czech president, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will remove conflicts of interest arising from his business activities before being appointed prime minister.

The Czech constitution “explicitly requires the head of state to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement said, noting that Pavel was prepared to designate Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Legal Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, operate in the nation and other regional states, receiving millions of euros in national and EU farming and other grants, as well as government deals.

Under national legislation, cabinet members 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, refuse government deals, or not enter government.

Past Term and Current Intentions

Babiš affirmed he would “abide by the laws” if appointed as prime minister, but declined to explain how in beforehand because the issue was “an highly personal and private affair for me, and the media will invariably criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several court cases and an European inquiry over possible ethical issues. 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 once more the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but refused to disclose details.

Governing Agreement and Foreign Policy Implications

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if confirmed, is likely to strengthen the populist bloc in the region and could challenge 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 president has a role for international relations, also requested that the coalition’s programme add a declaration on the official stance on the conflict in Ukraine, including a commitment to fulfilling Nato obligations.

The head of state has earlier said he would not approve any cabinet candidates who might doubt the nation's international alliances, a requirement that the far-right SPD has said it will satisfy by nominating non-partisan experts.