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Andrej Babiš, the self-styled tycoon that secured victory in last month's parliamentary vote, has declined to sell his vast corporate assets, while insisting he will address a conflict of interest that might block him from assuming the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the autumn election but lacked a majority in parliament, stated in a online statement that he will not sell his Agrofert conglomerate, which is active in agriculture, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have repeatedly stated I will resolve the conflict of interest in compliance with Czech and EU regulations,” Babiš commented. “This is not like selling a roll in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will remove ethical conflicts arising from his corporate dealings before assuming the role of premier.

The Czech constitution “clearly mandates the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when selecting cabinet members, the presidential administration noted.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, stating that Pavel was prepared to appoint Babiš as prime minister “immediately” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert group, function in the nation and other regional states, benefiting from millions of euros in national and EU farming and other subsidies, as well as government deals.

Under national legislation, government ministers cannot receiving public aid or agreements. The ethics organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or not enter government.

Past Tenure and Present Plans

Babiš said he would “follow the regulations” if selected as premier, but declined to detail how in advance because the issue was “an highly personal and personal matter for me, and journalists will invariably criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over possible ethical issues. He temporarily moved his holdings into trust funds, while keeping certain control over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but declined to disclose specifics.

Governing Agreement and Foreign Policy 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 primarily opposed the EU’s Green Deal.

The new government, if confirmed, is likely to bolster the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though 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 international relations, also demanded that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has previously said he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by nominating non-partisan experts.