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Andrej Babiš, the self-styled billionaire who won last month's Czech election, has declined to offload his vast corporate assets, while insisting he will address a conflict of interest that might prevent him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose political movement came first in the October vote but lacked a majority in parliament, stated in a social media post that he will not sell his Agrofert group, which is active in farming, food processing, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with national and EU regulations,” the billionaire remarked. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will eliminate ethical conflicts stemming from his corporate dealings before being appointed premier.

The Czech constitution “clearly mandates the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

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

Business Operations and Legal Concerns

Babiš's several hundred firms, mostly under the Agrofert group, operate in the Czech Republic and other central European countries, receiving millions of euros in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers are barred from receiving state support or contracts. The ethics watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or stay out of public office.

Past Tenure and Current Intentions

Babiš said he would “follow the regulations” if appointed as prime minister, but declined to explain how in advance because the issue was “an highly personal and personal matter for me, and journalists will always question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over potential conflicts of interest. He placed his assets into fiduciary arrangements, while keeping certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but declined to reveal details.

Governing Deal and Foreign Policy Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if approved, is expected to strengthen the populist movement in central and eastern Europe and could strain western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

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

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