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

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the October election but lacked a parliamentary majority, stated in a social media post that he will not sell his Agrofert group, which is active in agriculture, food processing, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have consistently stated I will address the conflict of interest in compliance with national and European laws,” Babiš remarked. “This is different from selling a roll in a bakeshop.”

Head of State's Requirement

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

The national charter “explicitly requires the head of state to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, Pavel's office explained.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was ready to appoint Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's numerous companies, mostly under the Agrofert group, operate in the nation and other regional countries, benefiting from substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under national legislation, government ministers cannot receiving public aid or contracts. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline public contracts, or not enter government.

Previous Tenure and Present Intentions

Babiš affirmed he would “follow the regulations” if appointed as premier, but did not want to detail how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will always criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over possible ethical issues. He placed his assets into fiduciary arrangements, while retaining some influence over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but refused to disclose details.

Governing Agreement and International Implications

The billionaire populist has signed a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if confirmed, is likely to strengthen the populist bloc in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also requested that the government agenda add a statement on the government’s position on the conflict in Ukraine, including a commitment to fulfilling alliance duties.

The head of state has earlier said he would not approve any ministerial nominees who might doubt the nation's EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will meet by nominating independent technocrats.