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Andrej Babiš, the self-styled billionaire that secured victory in the recent parliamentary vote, has declined to offload his extensive corporate assets, while asserting he will address a conflict of interest that could block him from assuming the position of prime minister.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a majority in parliament, stated in a social media post that he would not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will resolve the conflict of interest in accordance with Czech and European laws,” the billionaire remarked. “This is different from selling a roll in a bakeshop.”

President's Requirement

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

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

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement added, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was settled.

Business Operations and Legal Issues

Babiš's several hundred companies, mostly under the Agrofert umbrella, function in the Czech Republic and other regional states, receiving substantial funds in domestic and European farming and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot obtaining state support or contracts. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, refuse government deals, or not enter government.

Past Term and Present Plans

Babiš said he would “follow the regulations” if appointed as premier, but declined to detail how in beforehand because the issue was “an extremely sensitive and private affair for me, and the media will always question me anyway”.

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

A judicial body and the EU executive both determined that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but declined to disclose details.

Coalition Agreement and Foreign Policy Consequences

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if confirmed, is expected to bolster the populist bloc in the region and could challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for foreign policy, also requested that the government agenda add a declaration on the official stance on the conflict in Ukraine, including a pledge to fulfilling alliance duties.

The head of state has previously stated he would not approve any cabinet candidates who might doubt the nation's EU and Nato commitments, a condition that the far-right SPD has indicated it will satisfy by nominating non-partisan experts.