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Andrej Babiš, the self-proclaimed billionaire that secured victory in the recent parliamentary vote, has refused to offload his extensive business interests, while insisting he will address a conflict of interest that might prevent him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but lacked a parliamentary majority, stated in a online statement that he would not sell 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 said I will resolve the ethical issue in compliance with national and European laws,” the billionaire commented. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will remove conflicts of interest arising from his business activities before assuming the role of prime minister.

The Czech constitution “explicitly requires the head of state to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting government ministers, the presidential administration noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the Czech Republic and other central European states, benefiting from substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under Czech law, cabinet members cannot obtaining state support or agreements. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or stay out of public office.

Past Tenure and Current Intentions

Babiš said he would “follow the regulations” if appointed as premier, but did not want to explain how in advance because the issue was “an extremely sensitive and private affair for me, and journalists will always question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but refused to disclose specifics.

Governing Agreement and International Implications

The wealthy politician has signed a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

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

Pavel, who as head of state has a role for foreign policy, also demanded that the coalition’s programme include a declaration on the government’s position on the conflict in Ukraine, including a pledge to meeting Nato obligations.

The president has earlier stated he would not approve any cabinet candidates who might doubt the nation's international alliances, a condition that the far-right SPD has said it will meet by nominating non-partisan experts.