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Andrej Babiš, the self-styled billionaire that won last month's parliamentary vote, has declined to sell his extensive business interests, while asserting he will address a conflict of interest that might prevent him from taking the position of head of government.

Stance on Corporate Empire

Babiš, whose political movement came first in the October vote 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 not sell Agrofert. I have consistently said I will address the conflict of interest in accordance with Czech and EU regulations,” Babiš remarked. “This is different from selling a pastry in a bakeshop.”

Head of State's Demand

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

The Czech constitution “clearly mandates the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, noting that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was settled.

Business Operations and Legal Concerns

Babiš's several hundred companies, mostly under the Agrofert group, operate in the Czech Republic and other central European countries, benefiting from millions of euros in domestic and European agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers are barred from receiving state support or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, decline government deals, or not enter public office.

Previous Tenure and Present Intentions

Babiš affirmed he would “abide by the regulations” if appointed as premier, but did not want to detail how in advance because the matter was “an highly personal and personal matter for me, and the media will invariably criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over possible conflicts of interest. He temporarily moved his holdings into trust funds, while retaining certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš stated recently that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to reveal details.

Coalition Deal and International Consequences

The billionaire populist has signed a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if approved, is likely to strengthen the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for international relations, also demanded that the coalition’s programme include a declaration on the government’s position on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

The president has earlier stated he would not endorse any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by proposing independent technocrats.