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Andrej Babiš, the self-proclaimed billionaire who won last month's parliamentary vote, has refused to offload his extensive corporate assets, while asserting he will resolve a conflict of interest that might prevent him from taking the position of head of government.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the October election but lacked a parliamentary majority, declared in a online statement that he will not divest his Agrofert group, which is active in agriculture, food production, 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 national and European laws,” Babiš remarked. “This is different from selling a roll in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, announced that the elderly populist must publicly explain how he will remove ethical conflicts arising from his business activities before being appointed premier.

The Czech constitution “explicitly requires the president to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, Pavel's office noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement said, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was settled.

Business Operations and Regulatory Concerns

Babiš's several hundred firms, primarily under the Agrofert group, operate in the Czech Republic and other regional countries, receiving millions of euros in national and EU agricultural and other subsidies, as well as public contracts.

Under Czech law, government ministers are barred from obtaining state support or contracts. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, refuse government deals, or stay out of government.

Past Tenure and Current Intentions

Babiš said he would “abide by the laws” if selected as premier, but did not want to detail how in beforehand because the matter was “an extremely sensitive and private affair for me, and journalists will always criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over possible conflicts of interest. He placed his holdings into trust funds, while keeping certain control over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but refused to disclose details.

Coalition Deal and Foreign Policy Implications

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, 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 Green Deal.

The incoming administration, if approved, is expected to strengthen the populist bloc in central and eastern Europe and could challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme add a declaration on the government’s position on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

The president has previously stated he would not approve any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will satisfy by proposing independent technocrats.