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Andrej Babiš, the self-proclaimed tycoon that secured victory in last month's Czech election, has declined to sell his extensive business interests, while insisting he will resolve a conflict of interest that might prevent him from assuming the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party came first in the autumn vote but lacked a majority in parliament, declared in a social media post that he will not divest his Agrofert conglomerate, which is active in agriculture, food production, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have consistently stated I will resolve the ethical issue in accordance with national and European laws,” the billionaire remarked. “This is not like selling a roll in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will eliminate ethical conflicts arising from his corporate dealings before assuming the role of premier.

The national charter “clearly mandates the president to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, Pavel's office noted.

The president “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was prepared to appoint Babiš as premier “immediately” once the matter was resolved.

Business Operations and Legal Issues

Babiš's several hundred firms, primarily under the Agrofert group, operate in the Czech Republic and other regional states, benefiting from substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under national legislation, government ministers are barred from obtaining public aid or agreements. The ethics organization Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, decline government deals, or stay out of government.

Previous Term and Present Plans

Babiš affirmed he would “follow the regulations” if selected as prime minister, but declined to explain how in beforehand because the matter was “an highly personal and private affair for me, and the media will invariably criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over potential ethical issues. He temporarily moved his holdings into trust funds, while retaining some influence over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but refused to disclose details.

Coalition Agreement and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

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

Pavel, who as president has a role for foreign policy, also demanded that the coalition’s programme add a declaration on the government’s position on Russia’s war in Ukraine, including a commitment to fulfilling Nato obligations.

The head of state has earlier said he would not endorse any ministerial nominees who might question the nation's EU and Nato commitments, a requirement that the far-right SPD has said it will meet by proposing independent technocrats.