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Andrej Babiš, the self-styled billionaire who won last month's parliamentary vote, has declined to offload his extensive business interests, while asserting he will resolve a conflict of interest that could prevent him from assuming the position of head of government.

Stance on Corporate Empire

Babiš, whose political movement came first in the autumn vote but lacked a majority in parliament, stated in a social media post that he will not sell his Agrofert conglomerate, which operates in farming, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with Czech and EU regulations,” the billionaire 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 political figure must publicly explain how he will eliminate conflicts of interest arising from his business activities before being appointed premier.

The national charter “clearly mandates the head of state to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration explained.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, noting that Pavel was prepared to designate Babiš as prime minister “without delay” once the issue was resolved.

Business Operations and Regulatory Issues

Babiš's numerous companies, primarily under the Agrofert group, function in the nation and other central European states, benefiting from millions of euros in national and EU farming and other subsidies, as well as public contracts.

Under Czech law, government ministers are barred from receiving state support or agreements. The anti-corruption organization Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse public contracts, or stay out of public office.

Past Tenure and Present Plans

Babiš affirmed he would “follow the laws” if appointed as prime minister, but declined to detail how in advance because the issue was “an extremely sensitive and personal matter for me, and journalists will invariably criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over possible 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 did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but refused to reveal details.

Governing Agreement and International Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if confirmed, is likely to bolster the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for international relations, also requested that the coalition’s programme add a declaration on the government’s position on Russia’s war in Ukraine, including a commitment to fulfilling Nato obligations.

The president has earlier said he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.