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Andrej Babiš, the self-proclaimed billionaire that secured victory in the recent parliamentary vote, has declined to offload his extensive business interests, while insisting he will resolve a conflict of interest that might block him from assuming the role of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the autumn vote but lacked a parliamentary majority, declared in a online statement that he would not divest his Agrofert group, which is active in agriculture, food processing, and chemical industries.

“I have consistently said I will never sell Agrofert. I have consistently said I will resolve the ethical issue in accordance with national and European laws,” Babiš commented. “This is different from selling a pastry in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, stated that the elderly populist must clarify openly how he will eliminate ethical conflicts arising from his business activities before assuming the role of premier.

The Czech constitution “clearly mandates the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when appointing cabinet members, Pavel's office noted.

The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement said, stating that Pavel was prepared to appoint Babiš as premier “immediately” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European states, receiving substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members are barred from receiving public aid or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, refuse public contracts, or not enter government.

Previous Tenure and Present Intentions

Babiš affirmed he would “follow the regulations” if appointed as prime minister, but declined to detail how in advance because the matter was “an highly personal and private affair for me, and journalists will invariably question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over possible conflicts of interest. He placed his assets into fiduciary arrangements, while retaining some influence over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but refused to disclose details.

Coalition Deal and International Consequences

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The new government, if confirmed, is likely to bolster the populist movement in the region and could challenge western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for international relations, also demanded that the government agenda add a statement on the official stance on Russia’s war in Ukraine, with a commitment to meeting Nato obligations.

The head of state has earlier said he would not endorse any cabinet candidates who might doubt the Czech Republic’s international alliances, a requirement that the ultra-conservative party has said it will satisfy by nominating independent technocrats.