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Andrej Babiš, the self-styled billionaire that won the recent parliamentary vote, has declined to sell his extensive business interests, while asserting he will resolve a conflict of interest that might block him from taking the role of head of government.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the October vote but lacked a majority in parliament, stated in a online statement that he would not sell his Agrofert group, which is active in farming, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently stated I will address the ethical issue in accordance with Czech and European laws,” the billionaire commented. “This is not like selling a roll in a bakery.”

President'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 stemming from his corporate dealings before assuming the role of premier.

The national charter “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when selecting cabinet members, the presidential administration explained.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement said, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was settled.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, mostly under the Agrofert group, operate in the Czech Republic and other regional states, benefiting from millions of euros in national and EU farming and other subsidies, as well as government deals.

Under Czech law, government ministers are barred from receiving public aid or agreements. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or stay out of government.

Past Tenure and Current Plans

Babiš said he would “follow the regulations” if selected as prime minister, but declined to explain how in beforehand because the matter was “an highly personal and private affair for me, and the media will always criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over potential 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 stated last month that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to disclose details.

Coalition Deal and Foreign Policy Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to bolster the populist bloc in central and eastern Europe and could strain western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme include a declaration on the government’s position on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

The president has earlier said he would not endorse any cabinet candidates who might question the Czech Republic’s international alliances, a requirement that the far-right SPD has said it will satisfy by proposing non-partisan experts.