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

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn vote but lacked a parliamentary majority, declared in a online statement that he will not sell his Agrofert group, which operates in agriculture, food processing, and chemical industries.

“I have consistently said I will never sell Agrofert. I have repeatedly stated I will resolve the conflict of interest in compliance with national and EU regulations,” Babiš remarked. “This is different from selling a roll in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will remove conflicts of interest arising from his business activities before being appointed prime minister.

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 government ministers, Pavel's office noted.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, stating that Pavel was ready to designate Babiš as premier “immediately” once the matter was resolved.

Business Operations and Regulatory Concerns

Babiš's numerous companies, mostly under the Agrofert group, function in the nation and other regional states, benefiting from millions of euros in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, cabinet members cannot receiving public aid or contracts. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse public contracts, or not enter public office.

Previous Term and Present Plans

Babiš affirmed he would “follow the regulations” if appointed as prime minister, but did not want to detail how in advance because the matter was “an extremely sensitive and personal matter for me, and journalists will always question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over possible conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A court and the EU executive both ruled that this did not suffice. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but declined to reveal specifics.

Coalition Deal and International Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The new government, if approved, is likely to strengthen the populist bloc in the region and could strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, with a commitment to meeting Nato obligations.

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