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Andrej Babiš, the self-proclaimed tycoon that won last month's parliamentary vote, has refused to sell his vast corporate assets, while asserting he will address a conflict of interest that could block him from assuming the role of head of government.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the October election but lacked a majority in parliament, declared in a online statement that he will not divest his Agrofert group, which operates in agriculture, food processing, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with national and European laws,” the billionaire remarked. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts arising from his business activities before being appointed prime minister.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting cabinet members, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was ready to designate Babiš as premier “without delay” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert group, function in the Czech Republic and other central European countries, receiving millions of euros in national and EU farming and other grants, as well as government deals.

Under Czech law, cabinet members are barred from receiving state support or agreements. The ethics organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, decline public contracts, or stay out of government.

Previous Tenure and Current Intentions

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

During his first term as premier, from 2017 to 2021, Babiš faced 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 court and the European Commission both determined that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but declined to reveal details.

Governing Deal and Foreign Policy Consequences

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if approved, is expected to strengthen the populist bloc in central and eastern Europe and might strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for international relations, also demanded that the coalition’s programme include a statement on the official stance on the conflict in Ukraine, including a commitment to fulfilling alliance duties.

The president has previously stated he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has said it will meet by nominating independent technocrats.