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Andrej Babiš, the self-styled billionaire who secured victory in last month's parliamentary vote, has declined to sell his extensive corporate assets, while asserting he will resolve a conflict of interest that might prevent him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose political movement came first in the autumn election but lacked a majority in parliament, declared in a online statement that he will not divest his Agrofert conglomerate, which operates in farming, food production, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in compliance with Czech and European laws,” Babiš remarked. “This is not like selling a pastry in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will eliminate ethical conflicts arising from his corporate dealings before assuming the role of prime minister.

The Czech constitution “clearly mandates the head of state to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The president “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, stating that Pavel was ready to appoint Babiš as premier “without delay” once the issue was settled.

Business Operations and Regulatory Issues

Babiš's numerous companies, 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 grants, as well as government deals.

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The ethics organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, refuse government deals, or stay out of government.

Previous Term and Current Plans

Babiš affirmed he would “abide by the laws” if appointed as prime minister, but did not want to explain how in beforehand because the matter was “an highly personal and private affair for me, and the media will invariably criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over possible conflicts of interest. He placed his assets into fiduciary arrangements, while keeping some influence over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but refused to reveal specifics.

Governing Deal and Foreign Policy 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 exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if approved, is likely to strengthen the populist bloc in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the government agenda add a statement on the official stance on the conflict in Ukraine, with a commitment to meeting 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 far-right SPD has said it will satisfy by proposing independent technocrats.