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Andrej Babiš, the self-styled tycoon that won the recent parliamentary vote, has declined to offload his vast business interests, while insisting he will resolve a conflict of interest that might 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 lacked a parliamentary majority, stated in a online statement that he will not sell his Agrofert group, which is active in farming, food processing, and chemicals.

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

President's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will eliminate conflicts of interest stemming from his business activities before being appointed premier.

The national charter “clearly mandates the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, the presidential administration explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement said, stating that Pavel was ready to designate Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert group, operate in the nation and other central European countries, receiving millions of euros in domestic and European agricultural and other grants, as well as government deals.

Under national legislation, government ministers are barred from obtaining public aid or agreements. The anti-corruption watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or stay out of government.

Past Term and Current Plans

Babiš said he would “follow the regulations” if appointed as prime minister, but did not want to explain how in beforehand because the matter was “an extremely sensitive and personal matter for me, and the media will always question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible ethical issues. 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 stated last month that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to reveal details.

Governing Agreement and Foreign Policy Consequences

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if confirmed, is expected to strengthen the populist bloc in central and eastern Europe and might challenge western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for foreign policy, also requested that the government agenda add a statement on the official stance on the conflict in Ukraine, including a commitment to fulfilling alliance duties.

The head of state has previously stated he would not approve any cabinet candidates who might doubt the nation's EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by nominating independent technocrats.