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Andrej Babiš, the self-proclaimed billionaire who won the recent Czech election, has declined to offload his extensive business interests, while asserting he will address a conflict of interest that might block him from assuming the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party came first in the October election but lacked a parliamentary majority, declared in a online statement that he will not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“I have consistently said I will never sell Agrofert. I have consistently said I will address the ethical issue in compliance with national and European laws,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will remove conflicts of interest stemming from his business activities before assuming the role of prime minister.

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

The president “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was ready to designate Babiš as prime minister “immediately” once the matter was settled.

Business Operations and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert group, operate in the nation and other central European states, benefiting from substantial funds in national and EU farming and other grants, as well as government deals.

Under national legislation, cabinet members cannot receiving state support or contracts. The anti-corruption organization Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, refuse government deals, or stay out of government.

Previous Term and Present Plans

Babiš affirmed he would “abide by the regulations” if appointed as prime minister, but declined to explain how in beforehand because the matter was “an highly personal and personal matter for me, and journalists will invariably question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over potential ethical issues. He placed his assets into trust funds, while retaining certain control over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but declined to disclose specifics.

Governing Deal and International Implications

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to strengthen the populist bloc in the region and could strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

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

The head of state has previously said 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 said it will meet by nominating independent technocrats.