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Andrej Babiš, the self-styled billionaire who secured victory in the recent Czech election, has refused to sell his vast business interests, while insisting he will resolve a conflict of interest that might block him from assuming the role of head of government.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn election but did not secure a majority in parliament, stated in a social media post that he would not sell his Agrofert group, which is active in farming, food processing, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have consistently stated I will address the ethical issue in compliance with Czech and EU regulations,” Babiš commented. “This is different from selling a pastry in a bakery.”

President's Requirement

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will eliminate ethical conflicts stemming from his corporate dealings before being appointed prime minister.

The national charter “clearly mandates the president to take into account the possible emergence of a ethical issue and the ways to address it” when selecting cabinet members, Pavel's office noted.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement said, noting that Pavel was ready to designate Babiš as premier “immediately” once the issue was settled.

Corporate Activities and Legal Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, operate in the Czech Republic and other regional states, benefiting from substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under Czech law, cabinet members cannot obtaining state support or contracts. The anti-corruption organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, refuse public contracts, or not enter government.

Past Term and Present Intentions

Babiš said he would “follow the laws” if selected as prime minister, but declined to detail how in advance because the issue was “an extremely sensitive and private affair for me, and the media will always question me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over possible ethical issues. He temporarily moved his holdings into fiduciary arrangements, while keeping certain control over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš confirmed recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but refused to reveal details.

Coalition Deal and International Implications

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated 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 expected to bolster the populist movement in the region and might strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the government agenda include a declaration on the government’s position on the conflict in Ukraine, including a pledge to fulfilling Nato obligations.

The head of state has previously said he would not endorse any ministerial nominees who might doubt the nation's international alliances, a condition that the ultra-conservative party has said it will satisfy by nominating independent technocrats.