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Andrej Babiš, the self-styled billionaire that won last month's Czech election, has declined to sell his extensive business interests, while asserting he will resolve a conflict of interest that might block him from assuming the role of prime minister.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October vote but did not secure a parliamentary majority, stated in a online statement that he will not sell his Agrofert conglomerate, which is active in agriculture, food processing, and chemical industries.

“I have consistently said I will not sell Agrofert. I have repeatedly said I will resolve the conflict of interest in compliance with Czech and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, announced that the elderly populist must clarify openly how he will remove 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 conflict of interest and the possibilities for its resolution” when appointing 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 said, stating that Pavel was ready to appoint Babiš as premier “immediately” once the issue was resolved.

Business Operations and Regulatory Issues

Babiš's several hundred companies, primarily under the Agrofert group, operate in the Czech Republic and other central European countries, benefiting from substantial funds in national and EU agricultural and other grants, as well as government deals.

Under Czech law, cabinet members are barred from obtaining public aid or contracts. The anti-corruption watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either sell, refuse government deals, or stay out of public office.

Past Term and Present Plans

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

During his initial tenure as premier, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over possible conflicts of interest. He temporarily moved his assets into trust funds, while keeping certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš stated last month that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to disclose details.

Coalition Deal and Foreign Policy Implications

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if confirmed, is likely to bolster the populist bloc in central and eastern Europe and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme include a declaration on the official stance on the conflict in Ukraine, including a commitment to fulfilling alliance duties.

The president has earlier said he would not approve any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has indicated it will satisfy by nominating non-partisan experts.