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Andrej Babiš, the self-proclaimed tycoon who won last month's Czech election, has refused to sell his extensive business interests, while insisting he will resolve a conflict of interest that could block him from assuming the role of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the autumn election but did not secure a parliamentary majority, declared in a online statement that he will not sell his Agrofert conglomerate, which is active in agriculture, food processing, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with national and European laws,” the billionaire remarked. “This is different from selling a pastry in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the elderly populist must clarify openly how he will eliminate conflicts of interest arising from his business activities before being appointed premier.

The national charter “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when selecting government ministers, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, noting that Pavel was ready to designate Babiš as prime minister “without delay” once the issue was settled.

Corporate Activities and Regulatory Issues

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

Under national legislation, cabinet members are barred from receiving state support or contracts. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or stay out of government.

Previous Term and Current Plans

Babiš said he would “abide by the regulations” if selected as prime minister, but declined to explain how in beforehand because the matter was “an extremely sensitive and personal matter for me, and the media will always criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over possible conflicts of interest. He placed his assets into trust funds, while keeping certain control over them.

A court and the European Commission both ruled that this did not suffice. Babiš confirmed last month that he was again the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but refused to reveal details.

Governing Deal and Foreign Policy Consequences

The wealthy politician has signed a coalition agreement 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 opposed the EU’s environmental policy.

The new government, if confirmed, is likely to bolster the populist bloc in the region 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 head of state has a role for international relations, also demanded that the government agenda include a declaration on the official stance on Russia’s war in Ukraine, with a pledge to meeting alliance duties.

The president has previously stated he would not approve 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 non-partisan experts.