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Andrej Babiš, the self-proclaimed billionaire that secured victory in the recent parliamentary vote, has refused to offload his extensive business interests, while insisting he will resolve a conflict of interest that could block him from assuming the position of head of government.

Position on Corporate Empire

Babiš, whose political movement came first in the autumn election but lacked a parliamentary majority, stated in a social media post that he would not divest his Agrofert conglomerate, which operates in farming, food processing, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly stated I will address the ethical issue in accordance with national and EU regulations,” the billionaire remarked. “This is different from selling a roll in a bakeshop.”

Head of State's Requirement

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

The national charter “clearly mandates the president to take into account the possible emergence of a ethical issue and the ways to address it” when appointing government ministers, Pavel's office explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Legal Issues

Babiš's numerous firms, mostly under the Agrofert group, operate in the nation and other central European states, benefiting from millions of euros in national and EU farming and other grants, as well as public contracts.

Under Czech law, cabinet members are barred from receiving state support or agreements. The ethics watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, refuse public contracts, or not enter government.

Past Tenure and Present Plans

Babiš affirmed he would “follow the regulations” if selected as prime minister, but declined to detail how in advance because the matter was “an highly personal and personal matter for me, and journalists will invariably criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while retaining some influence over them.

A judicial body and the European Commission both ruled that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but refused to disclose details.

Governing Agreement and International Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The new government, if confirmed, is likely to strengthen the populist movement in the region and might strain western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for foreign policy, also requested that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

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