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Andrej Babiš, the self-proclaimed billionaire who secured victory in the recent parliamentary vote, has refused to offload his vast business interests, while asserting he will resolve a conflict of interest that could prevent him from assuming the role of prime minister.

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the October election but did not secure a majority in parliament, stated in a online statement that he will not divest his Agrofert conglomerate, which operates in farming, 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,” the billionaire remarked. “This is different from selling a roll in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will remove ethical conflicts stemming from his corporate dealings before assuming the role of premier.

The Czech constitution “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting cabinet members, Pavel's office explained.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, noting that Pavel was prepared to appoint Babiš as prime minister “immediately” once the issue was resolved.

Business Operations and Regulatory Concerns

Babiš's several hundred firms, primarily under the Agrofert group, function in the Czech Republic and other central European countries, benefiting from millions of euros in domestic and European farming and other subsidies, as well as public contracts.

Under national legislation, cabinet members are barred from obtaining state support or agreements. The anti-corruption watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, refuse public contracts, or stay out of government.

Previous Tenure and Present Intentions

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 personal matter for me, and the media will invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A court and the European Commission both determined that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but refused to disclose details.

Governing Agreement and International Consequences

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to bolster the populist movement in central and eastern Europe and might challenge western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state has a role for international relations, also demanded that the government agenda add a declaration on the official stance on the conflict in Ukraine, including a pledge to fulfilling alliance duties.

The head of state has earlier stated he would not endorse any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will satisfy by nominating independent technocrats.