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Andrej Babiš, the self-styled billionaire that won the recent parliamentary vote, has refused to offload his vast corporate assets, while insisting he will resolve a conflict of interest that could prevent him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose ANO party came first in the October vote but lacked a parliamentary majority, declared in a online statement that he would not divest his Agrofert conglomerate, which is active in agriculture, food processing, and chemicals.

“I have repeatedly said I will not sell Agrofert. I have consistently said I will resolve the ethical issue in accordance with national and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove ethical conflicts stemming from his corporate dealings before being appointed prime minister.

The Czech constitution “clearly mandates the president to take into account the potential occurrence of a conflict of interest and the ways to address it” when appointing government ministers, the presidential administration noted.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, stating that Pavel was prepared to appoint Babiš as prime minister “immediately” once the matter was settled.

Corporate Activities and Legal Concerns

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

Under national legislation, cabinet members cannot receiving state support or contracts. The ethics organization Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, decline public contracts, or stay out of public office.

Previous Tenure and Current Intentions

Babiš affirmed he would “abide by the regulations” if appointed as prime minister, but declined to explain how in advance because the matter was “an highly personal and private affair for me, and journalists will invariably criticise me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over potential conflicts of interest. He temporarily moved his assets into trust funds, while retaining some influence over them.

A court and the European Commission both determined that this did not suffice. Babiš confirmed last month that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to reveal details.

Governing Deal and Foreign Policy Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is expected to bolster the populist bloc in central and eastern Europe and could strain western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for international relations, also requested that the government agenda include a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to meeting Nato obligations.

The president has previously said he would not endorse any ministerial nominees who might doubt the Czech Republic’s international alliances, a condition that the ultra-conservative party has said it will satisfy by proposing non-partisan experts.