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Andrej Babiš, the self-proclaimed billionaire who won the recent parliamentary vote, has refused to offload his vast business interests, while asserting he will address a conflict of interest that could prevent him from assuming the position of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October election but did not secure a parliamentary majority, stated in a social media post that he will not sell his Agrofert conglomerate, which is active in agriculture, food production, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with national and EU regulations,” Babiš remarked. “This is different from selling a pastry in a bakery.”

President's Requirement

The Czech president, 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 being appointed prime minister.

The Czech constitution “explicitly requires the president to consider the possible emergence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the statement said, stating that Pavel was ready to appoint Babiš as premier “immediately” once the matter was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert group, function in the Czech Republic and other central European countries, receiving millions of euros in domestic and European farming and other grants, as well as public contracts.

Under Czech law, cabinet members cannot receiving public aid or agreements. The anti-corruption organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, refuse government deals, or stay out of government.

Previous Tenure and Current Intentions

Babiš said he would “abide by the laws” if appointed as prime minister, but did not want to detail how in advance because the matter was “an highly personal and private affair for me, and the media will always question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential ethical issues. He placed his assets into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed last month that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but refused to disclose details.

Governing Agreement and Foreign Policy Consequences

The wealthy politician has signed 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 primarily campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is likely to strengthen the populist movement in central and eastern Europe and could challenge backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for international relations, also requested that the coalition’s programme include a declaration on the government’s position on Russia’s war in Ukraine, with a commitment to meeting Nato obligations.

The head of state has previously said he would not endorse any cabinet candidates who might question the nation's international alliances, a condition that the far-right SPD has indicated it will satisfy by proposing non-partisan experts.