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

Stance on Corporate Empire

Babiš, whose political movement came first in the October vote but lacked a majority in parliament, stated in a online statement that he would not sell his Agrofert conglomerate, which operates in farming, food production, and chemicals.

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

Head of State's Requirement

The head of state, Petr Pavel, announced that the elderly populist must publicly explain how he will remove ethical conflicts stemming from his corporate dealings before assuming the role of premier.

The Czech constitution “clearly mandates the president to consider the possible emergence of a conflict of interest and the ways to address it” when appointing cabinet members, the presidential administration explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was ready to designate Babiš as premier “immediately” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European countries, receiving substantial funds in domestic and European farming and other subsidies, as well as government deals.

Under national legislation, government ministers cannot receiving public aid or contracts. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline government deals, or not enter public office.

Past Term and Current Intentions

Babiš said he would “abide by the regulations” if selected as premier, but declined to explain how in beforehand because the matter was “an highly personal and personal matter for me, and journalists will always question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over possible ethical issues. He placed his holdings into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but refused to disclose specifics.

Governing Deal and Foreign Policy Consequences

The billionaire populist has signed a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if confirmed, is expected to bolster the populist movement in central and eastern Europe and could challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

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

The president has earlier stated he would not approve any ministerial nominees who might doubt the nation's international alliances, a condition that the far-right SPD has indicated it will meet by proposing independent technocrats.