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Andrej Babiš, the self-proclaimed billionaire that secured victory in the recent Czech election, has declined to sell 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 political movement came first in the autumn vote but did not secure a majority in parliament, declared in a online statement that he will not sell his Agrofert group, which is active 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 compliance with national and EU regulations,” Babiš remarked. “This is different from selling a roll in a bakery.”

President's Demand

The Czech president, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will remove ethical conflicts stemming from his business activities before being appointed premier.

The Czech constitution “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting government ministers, Pavel's office noted.

The president “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement added, noting that Pavel was ready to appoint Babiš as prime minister “immediately” once the matter was settled.

Business Operations and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert group, operate in the Czech Republic and other central European countries, benefiting from substantial funds in domestic and European agricultural and other subsidies, as well as government deals.

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

Past Term and Current Plans

Babiš said he would “follow the laws” if appointed as prime minister, but did not want to explain how in advance because the issue was “an extremely sensitive and personal matter for me, and journalists will always criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over potential conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while keeping certain control over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but refused to reveal specifics.

Coalition Agreement and Foreign Policy Implications

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if confirmed, is expected to bolster the populist movement in the region and might challenge western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for international relations, also demanded that the government agenda add a statement on the government’s position on the conflict in Ukraine, including a commitment to meeting alliance duties.

The head of state has earlier said he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the far-right SPD has said it will satisfy by nominating independent technocrats.