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Andrej Babiš, the self-proclaimed tycoon who won the recent parliamentary vote, has refused to offload his vast business interests, while asserting he will address a conflict of interest that might prevent him from taking the role of prime minister.

Position on Business Holdings

Babiš, whose ANO party came first in the October vote but lacked a parliamentary majority, stated in a social media post that he will not sell his Agrofert conglomerate, which operates in farming, food processing, and chemical industries.

“I have consistently said I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with national and European laws,” Babiš remarked. “This is not like selling a pastry 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 ethical conflicts stemming from his corporate dealings before being appointed 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 selecting cabinet members, Pavel's office noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the statement added, noting that Pavel was ready to designate Babiš as premier “immediately” once the issue was resolved.

Business Operations and Regulatory Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, function in the Czech Republic and other regional states, receiving millions of euros in domestic and European agricultural and other grants, as well as public contracts.

Under Czech law, government ministers are barred from obtaining public aid or agreements. The anti-corruption organization Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, refuse government deals, or stay out of government.

Previous Tenure and Present Plans

Babiš said he would “abide by the regulations” if selected as premier, but did not want to detail how in advance because the matter was “an extremely sensitive and personal matter for me, and journalists will invariably question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential ethical issues. He placed his holdings into trust funds, while keeping some influence over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed recently 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 specifics.

Governing Deal and International Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, 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 Green Deal.

The new government, if confirmed, is likely to bolster the populist movement in central and eastern Europe and could challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, 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 official stance on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has previously said he would not approve any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has said it will meet by nominating independent technocrats.