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Andrej Babiš, the self-styled billionaire who secured victory in the recent parliamentary vote, has declined to offload his vast corporate assets, while asserting he will address a conflict of interest that could prevent him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but lacked a parliamentary majority, declared in a social media post that he will not divest his Agrofert group, which operates in agriculture, food production, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have consistently stated I will resolve the ethical issue in accordance with national and European laws,” Babiš commented. “This is not like selling a roll in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the elderly populist must publicly explain how he will remove conflicts of interest arising from his business activities before being appointed prime minister.

The national charter “explicitly requires the president to take into account the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, the presidential administration noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was ready to designate Babiš as premier “immediately” once the matter was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert umbrella, function in the nation and other central European countries, receiving substantial funds in national and EU agricultural and other grants, as well as government deals.

Under national legislation, government ministers cannot receiving state support or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or stay out of public office.

Previous Tenure and Present Intentions

Babiš affirmed he would “follow the regulations” if selected as prime minister, but did not want to detail how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will always question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into trust funds, while retaining certain control over them.

A court and the European Commission both determined that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but refused to reveal specifics.

Governing Agreement and International Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if confirmed, is expected to bolster the populist bloc in central and eastern Europe and might strain backing from Western nations for Ukraine – even though Babiš has contacted 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 government agenda include a declaration on the official stance on the conflict in Ukraine, including a pledge to meeting alliance duties.

The head of state has earlier stated he would not endorse any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has said it will satisfy by proposing non-partisan experts.