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Andrej Babiš, the self-proclaimed billionaire that secured victory in the recent 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 election but lacked a majority in parliament, declared in a social media post that he would not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.

“I have consistently said I will not sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with Czech and EU regulations,” the billionaire commented. “This is not like selling a roll in a bakery.”

President's Demand

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove conflicts of interest stemming from his corporate dealings before being appointed prime minister.

The Czech constitution “explicitly requires the president to consider the possible emergence of a conflict of interest and the ways to address it” when selecting government ministers, Pavel's office noted.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was resolved.

Business Operations and Legal Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the Czech Republic and other regional countries, receiving substantial funds in national and EU agricultural and other subsidies, as well as public contracts.

Under Czech law, cabinet members are barred from receiving state support or agreements. The anti-corruption organization Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, decline public contracts, or not enter public office.

Previous Term and Present Intentions

Babiš affirmed he would “abide by the regulations” if appointed as premier, but declined to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and the media will invariably question me anyway”.

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

A court and the EU executive both determined that this was insufficient. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but refused to reveal details.

Governing 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 advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if confirmed, is expected to bolster the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for international relations, also demanded that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, with a commitment to meeting Nato obligations.

The head of state has earlier said he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will meet by proposing independent technocrats.