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Andrej Babiš, the self-styled billionaire that won the recent Czech election, has declined to offload his extensive corporate assets, while asserting he will resolve a conflict of interest that might block him from assuming the role of prime minister.

Stance on Business Holdings

Babiš, whose ANO party came first in the October vote but lacked a parliamentary majority, declared in a online statement that he will not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

“I have consistently said I will not sell Agrofert. I have consistently said I will address the conflict of interest in compliance with Czech and EU regulations,” the billionaire remarked. “This is different from selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove ethical conflicts arising from his corporate dealings before being appointed premier.

The Czech constitution “explicitly requires the head of state to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, Pavel's office explained.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert umbrella, operate in the nation and other regional countries, benefiting from substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under national legislation, government ministers are barred from obtaining public aid or agreements. The anti-corruption watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, decline government deals, or not enter public office.

Previous Term and Current Intentions

Babiš said he would “follow the regulations” if selected as premier, but did not want to explain how in advance because the matter was “an highly personal and personal matter for me, and the media will invariably criticise me anyway”.

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

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

Governing Deal and International Implications

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if confirmed, is likely to bolster the populist movement in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also demanded that the government agenda include a statement on the official stance on the conflict in Ukraine, including a pledge to meeting alliance duties.

The head of state has earlier stated he would not endorse any ministerial nominees who might question the nation's EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by nominating non-partisan experts.