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Andrej Babiš, the self-proclaimed billionaire who won last month's Czech election, has refused to sell his extensive corporate assets, while asserting he will address a conflict of interest that could block him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but lacked a majority in parliament, stated in a online statement that he would not sell his Agrofert conglomerate, which operates in farming, food production, and chemical industries.

“I have repeatedly stated I will not sell Agrofert. I have consistently said I will resolve the ethical issue in accordance with Czech and European laws,” Babiš commented. “This is different from selling a pastry in a bakeshop.”

President's Demand

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

The national charter “clearly mandates the president to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the announcement added, stating that Pavel was prepared to appoint Babiš as premier “immediately” once the issue was settled.

Business Operations and Legal Issues

Babiš's several hundred firms, primarily under the Agrofert group, function in the Czech Republic and other regional countries, benefiting from millions of euros in national and EU farming and other grants, as well as government deals.

Under Czech law, government ministers cannot receiving state support or contracts. The anti-corruption organization Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, decline public contracts, or not enter government.

Previous Tenure and Current Intentions

Babiš said he would “follow the regulations” if appointed as prime minister, but declined to detail how in beforehand because the matter was “an extremely sensitive and private affair 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 placed his assets into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both ruled that this did not suffice. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to reveal specifics.

Coalition Agreement and Foreign Policy Implications

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if confirmed, is likely to bolster the populist bloc in the region and could challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, including a commitment to meeting alliance duties.

The head of state has earlier stated he would not approve any cabinet candidates who might doubt the Czech Republic’s international alliances, a requirement that the far-right SPD has said it will meet by proposing non-partisan experts.