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Andrej Babiš, the self-styled billionaire that won the recent parliamentary vote, has refused to sell his vast corporate assets, while insisting he will resolve a conflict of interest that might block him from assuming the position of head of government.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the October election but lacked a majority in parliament, stated in a online statement that he would not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with national and European laws,” the billionaire commented. “This is different from selling a roll in a bakery.”

President's Requirement

The head of state, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will eliminate ethical conflicts arising from his corporate dealings before being appointed premier.

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, the presidential administration noted.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was prepared to appoint Babiš as premier “without delay” once the issue was settled.

Business Operations and Regulatory Issues

Babiš's numerous firms, primarily under the Agrofert umbrella, operate in the nation and other central European states, receiving substantial funds in domestic and European agricultural and other subsidies, as well as government deals.

Under national legislation, cabinet members are barred from obtaining state support or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, decline public contracts, or stay out of government.

Previous Tenure and Current Plans

Babiš said he would “abide by the laws” if appointed as prime minister, but did not want to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will invariably criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over possible ethical issues. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

A court and the European Commission both determined that this did not suffice. Babiš stated recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but declined to disclose specifics.

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 public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is expected to strengthen the populist bloc in central and eastern Europe and might challenge backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for international relations, also demanded that the government agenda add a statement on the official stance on the conflict in Ukraine, with a pledge to meeting alliance duties.

The head of state has previously said he would not approve any cabinet candidates who might question the Czech Republic’s international alliances, a requirement that the ultra-conservative party has said it will satisfy by nominating non-partisan experts.