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Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's parliamentary vote, has refused to sell his extensive business interests, while insisting he will address a conflict of interest that could block him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose ANO party came first in the autumn election but lacked a parliamentary majority, stated in a social media post that he will not divest his Agrofert conglomerate, which operates in farming, food processing, and chemical industries.

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

Head of State's Requirement

The Czech president, Petr Pavel, stated that the elderly populist must clarify openly how he will eliminate conflicts of interest stemming from his business activities before being appointed prime minister.

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

The head of state “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the announcement added, stating that Pavel was prepared to designate Babiš as premier “without delay” once the issue was settled.

Business Operations and Legal Issues

Babiš's numerous firms, primarily under the Agrofert group, operate in the nation and other central European states, benefiting from millions of euros in domestic and European agricultural and other subsidies, as well as public contracts.

Under Czech law, cabinet members are barred from receiving state support or agreements. The ethics watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either divest, refuse public contracts, or not enter public office.

Previous Term and Current Plans

Babiš affirmed he would “follow the laws” if selected as premier, but did not want to explain how in advance because the matter was “an highly personal and private affair for me, and the media will invariably question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over potential ethical issues. He placed his holdings into fiduciary arrangements, while retaining some influence over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but declined to reveal details.

Coalition Agreement and International Consequences

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The incoming administration, if approved, is expected to strengthen the populist movement in the region and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the government agenda add a declaration on the official stance on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

The head of state has previously said he would not approve any ministerial nominees who might question the nation's EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by nominating independent technocrats.