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Andrej Babiš, the self-proclaimed billionaire who secured victory in last month's Czech election, has declined to offload his extensive corporate assets, while insisting he will address a conflict of interest that could prevent him from assuming the position of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the autumn election but did not secure a majority in parliament, declared in a social media post that he will not divest his Agrofert group, which operates in agriculture, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in accordance with Czech and European laws,” Babiš remarked. “This is not like selling a roll in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the elderly populist must clarify openly how he will eliminate conflicts of interest arising from his business activities before assuming the role of prime minister.

The national charter “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement said, noting that Pavel was ready to designate Babiš as premier “without delay” once the matter was resolved.

Business Operations and Regulatory Concerns

Babiš's numerous companies, mostly under the Agrofert group, function in the nation and other central European states, benefiting from substantial funds in domestic and European agricultural and other grants, as well as public contracts.

Under Czech law, cabinet members are barred from obtaining state support or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, decline government deals, or stay out of public office.

Previous Tenure and Present Plans

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

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over possible ethical issues. He placed his assets into trust funds, while keeping some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated recently that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but refused to reveal details.

Governing Deal and Foreign Policy Consequences

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to bolster the populist movement in the region and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for international relations, also requested that the government agenda include a declaration on the government’s position on the conflict in Ukraine, including a pledge to fulfilling alliance duties.

The head of state has previously said he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by proposing independent technocrats.