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Andrej Babiš, the self-proclaimed billionaire that secured victory in the recent Czech election, has declined to offload his extensive business interests, while insisting he will resolve a conflict of interest that might block him from taking the role of prime minister.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the October election but did not secure a majority in parliament, stated in a online statement that he will not sell his Agrofert group, which is active in agriculture, food processing, and chemicals.

“I have consistently said I will not sell Agrofert. I have consistently said I will resolve the conflict of interest in accordance with Czech and European laws,” the billionaire remarked. “This is not like selling a roll in a bakeshop.”

President's Demand

The head of state, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will eliminate conflicts of interest arising from his corporate dealings before assuming the role of premier.

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the ways to address it” when selecting cabinet members, the presidential administration explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert group, function in the Czech Republic and other central European states, receiving millions of euros in national and EU farming and other subsidies, as well as public contracts.

Under Czech law, government ministers cannot receiving public aid or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse government deals, or stay out of government.

Past Tenure and Current Intentions

Babiš affirmed he would “abide by the laws” if selected as premier, but declined to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will invariably question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over potential ethical issues. He placed his holdings into trust funds, while keeping certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but declined to disclose details.

Governing Agreement and International Consequences

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly 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 incoming administration, if approved, is likely to strengthen the populist bloc in central and eastern Europe and could 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 has a role for international relations, also requested that the coalition’s programme include a declaration on the official stance on Russia’s war in Ukraine, including a pledge to fulfilling alliance duties.

The head of state has previously stated he would not endorse any cabinet candidates who might question the nation's international alliances, a requirement that the ultra-conservative party has indicated it will meet by proposing independent technocrats.