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Andrej Babiš, the self-proclaimed billionaire that won last month's parliamentary vote, has refused to offload his extensive corporate assets, while asserting he will address a conflict of interest that might prevent him from assuming the position of prime minister.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn election but did not secure a parliamentary majority, declared in a online statement that he would not sell his Agrofert group, which is active in farming, food processing, and chemical industries.

“I have consistently said I will never sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with national and EU regulations,” the billionaire commented. “This is different from selling a pastry in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the elderly political figure must clarify openly how he will eliminate 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 potential occurrence of a ethical issue and the ways to address it” when appointing government ministers, the presidential administration noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to appoint Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert group, operate in the Czech Republic and other regional countries, benefiting from substantial funds in national and EU farming and other grants, as well as government deals.

Under national legislation, cabinet members cannot receiving public aid or agreements. The ethics organization Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or stay out of government.

Previous Term and Present Intentions

Babiš affirmed he would “abide by the regulations” if selected as prime minister, but did not want to detail how in advance because the matter was “an highly personal and private affair for me, and the media will always question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential ethical issues. He placed his assets into fiduciary arrangements, while keeping certain control over them.

A court and the European Commission both determined that this was insufficient. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but refused to disclose details.

Governing Agreement and Foreign Policy Consequences

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

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

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

The president has earlier said he would not approve any cabinet candidates who might question the Czech Republic’s international alliances, a requirement that the far-right SPD has indicated it will satisfy by nominating non-partisan experts.