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Andrej Babiš, the self-proclaimed billionaire that won the recent parliamentary vote, has declined to sell his vast business interests, while asserting he will address a conflict of interest that might block him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October vote but lacked a parliamentary majority, stated in a social media post that he would not divest his Agrofert group, which operates in agriculture, food processing, and chemicals.

“I have consistently stated I will not sell Agrofert. I have consistently stated I will resolve the ethical issue in accordance with national and EU regulations,” Babiš remarked. “This is not like selling a roll in a bakeshop.”

President's Demand

The head of state, Petr Pavel, announced that the elderly political figure must clarify openly how he will remove conflicts of interest stemming from his business activities before being appointed prime minister.

The national charter “explicitly requires the head of state to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, Pavel's office noted.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement added, noting that Pavel was prepared to designate Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert group, operate in the nation and other central European countries, benefiting from substantial funds in national and EU farming and other subsidies, as well as public contracts.

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

Previous Term and Present Plans

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

During his first term as premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to disclose specifics.

Governing Deal and International Implications

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to strengthen the populist movement in the region and might challenge western support for Ukraine – although Babiš has contacted 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 government agenda add a statement on the government’s position on Russia’s war in Ukraine, including a pledge to fulfilling Nato obligations.

The head of state has earlier stated he would not endorse any ministerial nominees who might question the nation's international alliances, a requirement that the ultra-conservative party has said it will meet by nominating non-partisan experts.