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Andrej Babiš, the self-styled billionaire who secured victory in the recent Czech election, has refused to offload his vast corporate assets, while asserting he will resolve a conflict of interest that could block him from assuming the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a majority in parliament, declared in a social media post that he will not sell his Agrofert conglomerate, which operates in farming, food processing, and chemicals.

“I have consistently said I will never sell Agrofert. I have consistently said I will resolve the ethical issue in accordance with national and EU regulations,” the billionaire commented. “This is different from selling a roll in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts arising from his corporate dealings before being appointed premier.

The national charter “clearly mandates the head of state to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was prepared to appoint Babiš as prime minister “immediately” once the issue was settled.

Business Operations and Legal Issues

Babiš's numerous firms, primarily under the Agrofert umbrella, operate in the Czech Republic and other regional states, receiving substantial funds in national and EU agricultural and other grants, as well as government deals.

Under Czech law, cabinet members cannot obtaining state support or agreements. The ethics watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or not enter public office.

Past Term and Present Plans

Babiš said he would “abide by the laws” if appointed as prime minister, but did not want to detail how in advance because the issue was “an extremely sensitive and private affair for me, and the media will invariably criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over possible conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while retaining some influence over them.

A court and the European Commission both determined that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but declined to reveal specifics.

Coalition Deal and Foreign Policy Consequences

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if approved, is expected to strengthen the populist bloc in the region and could challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also requested that the government agenda include a statement on the government’s position on the conflict in Ukraine, with a commitment to fulfilling alliance duties.

The president has previously said he would not endorse any cabinet candidates who might doubt the nation's international alliances, a condition that the far-right SPD has indicated it will meet by nominating independent technocrats.