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Andrej Babiš, the self-proclaimed billionaire that won the recent parliamentary vote, has declined to offload his extensive corporate assets, while asserting he will address a conflict of interest that could prevent him from assuming the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party came first in the October election but lacked a parliamentary majority, stated in a online statement that he will not sell his Agrofert conglomerate, which operates in farming, food production, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have consistently stated I will address the ethical issue in accordance with national and European laws,” the billionaire 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 clarify openly how he will remove conflicts of interest stemming from his business activities before being appointed premier.

The Czech constitution “explicitly requires the president to take into account the possible emergence of a ethical issue and the possibilities for its resolution” 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, noting that Pavel was prepared to designate Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, primarily under the Agrofert group, function in the nation and other regional states, receiving substantial funds in domestic and European agricultural and other grants, as well as government deals.

Under Czech law, cabinet members cannot obtaining public aid or contracts. The ethics watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either divest, refuse public contracts, or stay out of government.

Previous Term and Present Intentions

Babiš affirmed he would “follow the regulations” if selected as prime minister, but declined to detail how in advance because the matter was “an highly personal 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 court cases and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

A court and the European Commission both determined that this was insufficient. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but declined to reveal details.

Coalition Deal and Foreign Policy Consequences

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

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

Pavel, who as head of state has a role for foreign policy, also requested that the government agenda include a declaration on the government’s position on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The head of state has earlier said he would not approve any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by nominating non-partisan experts.