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Andrej Babiš, the self-proclaimed billionaire that won the recent parliamentary vote, has declined to offload his extensive corporate assets, while insisting he will address a conflict of interest that could block him from assuming the position of prime minister.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the October election but did not secure a parliamentary majority, stated in a online statement that he will not divest his Agrofert conglomerate, which is active in agriculture, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have repeatedly said I will address the conflict of interest in compliance with national and EU regulations,” Babiš remarked. “This is not like selling a roll in a bakery.”

President's Requirement

The head of state, Petr Pavel, stated that the 71-year-old populist must clarify openly 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 take into account the possible emergence of a ethical issue and the ways to address it” when appointing cabinet members, the presidential administration explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, stating that Pavel was ready to designate Babiš as premier “immediately” once the matter was resolved.

Business Operations and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the Czech Republic and other central European countries, benefiting from substantial funds in domestic and European farming and other subsidies, as well as government deals.

Under Czech law, cabinet members are barred from receiving state support or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline public contracts, or stay out of government.

Past Term and Current Intentions

Babiš affirmed he would “follow the regulations” if appointed as prime minister, but did not want to explain how in beforehand because the matter was “an extremely sensitive and personal matter for me, and journalists will invariably criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while retaining some influence over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but declined to disclose details.

Coalition Agreement and International Implications

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to bolster the populist movement in the region and might challenge backing from Western nations for Ukraine – even though 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 requested that the government agenda add a statement on the official stance on Russia’s war in Ukraine, with a commitment to fulfilling alliance duties.

The head of state has previously said he would not approve any cabinet candidates who might question the nation's international alliances, a requirement that the ultra-conservative party has said it will meet by nominating independent technocrats.