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Andrej Babiš, the self-proclaimed tycoon that won the recent parliamentary vote, has refused to sell his extensive corporate assets, while insisting he will resolve a conflict of interest that might block him from assuming the position of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the October election but lacked a parliamentary majority, declared in a online statement that he will 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 stated I will resolve the ethical issue in accordance with national and EU regulations,” Babiš commented. “This is different from selling a roll in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will remove conflicts of interest stemming from his business activities before assuming the role of premier.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, the presidential administration noted.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, stating that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Legal Concerns

Babiš's several hundred firms, mostly under the Agrofert group, function in the Czech Republic and other regional countries, benefiting from millions of euros in national and EU farming and other subsidies, as well as government deals.

Under national legislation, cabinet members cannot obtaining state support or contracts. The ethics watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, refuse public contracts, or stay out of government.

Previous Term and Present Plans

Babiš affirmed he would “follow the laws” if selected as premier, but declined to detail how in advance because the matter was “an highly personal and personal matter for me, and the media will invariably criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over possible ethical issues. He temporarily moved his holdings into fiduciary arrangements, while retaining some influence over them.

A court and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but refused to disclose details.

Governing Deal and International Implications

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to strengthen 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 confirm of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda include a declaration on the government’s position on the conflict in Ukraine, with a commitment to meeting alliance duties.

The president has earlier said he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a condition that the far-right SPD has said it will satisfy by nominating independent technocrats.