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Andrej Babiš, the self-proclaimed tycoon that secured victory in last month's parliamentary vote, has refused to sell his extensive corporate assets, while insisting he will address a conflict of interest that could prevent him from assuming the position of head of government.

Position on Business Holdings

Babiš, whose political movement came first in the October election but did not secure a majority in parliament, stated in a online statement that he will not divest his Agrofert conglomerate, which is active in agriculture, food processing, and chemicals.

“I have consistently stated I will never sell Agrofert. I have repeatedly said I will resolve the conflict of interest in compliance with Czech and European laws,” Babiš commented. “This is not like selling a roll in a bakeshop.”

Head of State's Requirement

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

The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, noting that Pavel was ready to appoint Babiš as premier “immediately” once the matter was settled.

Business Operations and Legal Concerns

Babiš's numerous firms, primarily under the Agrofert group, function in the Czech Republic and other regional countries, benefiting from substantial funds in national and EU farming and other grants, as well as public contracts.

Under national legislation, government ministers cannot receiving state support or agreements. The anti-corruption watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, decline government deals, or not enter public office.

Past Term and Present Intentions

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

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over potential conflicts of interest. He placed his assets into fiduciary arrangements, while retaining some influence over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš stated last month that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but declined to reveal details.

Coalition Deal and International Consequences

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if confirmed, is expected to bolster the populist bloc in the region and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, 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 add a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.

The president has previously said he would not approve any ministerial nominees who might question the nation's EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will satisfy by proposing independent technocrats.