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Andrej Babiš, the self-styled billionaire that won the recent parliamentary vote, has declined to offload his vast corporate assets, while insisting he will address a conflict of interest that could prevent him from assuming the position of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the October election but lacked a parliamentary majority, declared in a social media post that he will not sell his Agrofert group, which is active in farming, food processing, and chemical industries.

“I have consistently said I will never sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with national and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will eliminate conflicts of interest arising from his business activities before being appointed premier.

The national charter “explicitly requires the president to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, Pavel's office explained.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement said, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the matter was resolved.

Business Operations and Regulatory Issues

Babiš's numerous companies, mostly under the Agrofert group, function in the Czech Republic and other central European states, receiving millions of euros in domestic and European agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers are barred from receiving public aid or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or not enter government.

Previous Tenure and Present Plans

Babiš affirmed he would “follow the regulations” if appointed as prime minister, but did not want to detail how in advance because the matter was “an highly personal and personal matter for me, and journalists will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over possible ethical issues. He temporarily moved his holdings into fiduciary arrangements, while keeping certain control over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to reveal details.

Governing Deal and Foreign Policy Implications

The billionaire populist has signed a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if confirmed, is expected to bolster the populist movement in the region and could challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda include a statement on the government’s position on Russia’s war in Ukraine, including a commitment to meeting Nato obligations.

The head of state has previously said he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.