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Andrej Babiš, the self-proclaimed billionaire who secured victory in the recent Czech election, has refused to offload his vast business interests, while asserting he will resolve a conflict of interest that might prevent him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but lacked a parliamentary majority, stated in a online statement that he would not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have consistently stated I will resolve the ethical issue in accordance with national and European laws,” the billionaire commented. “This is different from selling a roll in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will eliminate conflicts of interest stemming from his corporate dealings before being appointed prime minister.

The Czech constitution “clearly mandates the president to consider the potential occurrence of a ethical issue and the ways to address it” when selecting cabinet members, Pavel's office noted.

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

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, primarily under the Agrofert group, function in the Czech Republic and other regional countries, benefiting from millions of euros in domestic and European agricultural and other subsidies, as well as public contracts.

Under national legislation, cabinet members are barred from receiving state support or contracts. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either divest, decline government deals, or stay out of public office.

Past Term and Present 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 extremely sensitive and personal matter for me, and the media will always criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over possible ethical issues. He temporarily moved his holdings into trust funds, while keeping some influence over them.

A court and the European Commission both ruled that this was insufficient. Babiš confirmed recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but refused to reveal details.

Coalition Agreement and International Consequences

The billionaire populist has signed a governing pact 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 primarily campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is likely to strengthen the populist bloc in the region and might strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for international relations, also requested that the government agenda include a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to fulfilling Nato obligations.

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