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Andrej Babiš, the self-proclaimed billionaire who secured victory in the recent parliamentary vote, has refused to sell his extensive corporate assets, while asserting he will address a conflict of interest that could block him from assuming the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but lacked a majority in parliament, declared in a online statement that he would not divest his Agrofert group, which is active in agriculture, food production, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly stated I will address the ethical issue in accordance with Czech and European laws,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will eliminate ethical conflicts arising from his business activities before assuming the role of prime minister.

The national charter “explicitly requires the president to take into account the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, the presidential administration noted.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was ready to appoint Babiš as premier “immediately” once the matter was settled.

Business Operations and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional countries, receiving substantial funds in domestic and European farming and other grants, as well as government deals.

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

Previous Tenure and Current Plans

Babiš affirmed he would “abide by the regulations” if selected as premier, but did not want to detail how in beforehand because the matter was “an extremely sensitive and personal matter for me, and journalists will invariably question me regardless”.

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

A judicial body and the European Commission both ruled that this was insufficient. Babiš confirmed 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 reveal specifics.

Coalition Deal and Foreign Policy Consequences

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if confirmed, is expected to bolster the populist movement in central and eastern Europe and might challenge western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for foreign policy, also demanded that the coalition’s programme include a statement on the official stance on the conflict in Ukraine, including a pledge to fulfilling alliance duties.

The president has previously stated he would not approve any ministerial nominees who might question the nation's international alliances, a requirement that the ultra-conservative party has said it will satisfy by proposing non-partisan experts.