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Andrej Babiš, the self-styled billionaire that won the recent Czech election, has declined to offload his vast corporate assets, while asserting he will address a conflict of interest that could prevent him from assuming the role of head of government.

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the autumn vote but lacked a majority in parliament, declared in a online statement that he will not sell his Agrofert group, which is active in farming, food processing, and chemical industries.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with national and EU regulations,” the billionaire remarked. “This is not like selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly populist must clarify openly how he will eliminate conflicts of interest stemming from his corporate dealings before being appointed premier.

The Czech constitution “explicitly requires the head of state to take into account the possible emergence of a ethical issue and the ways to address it” when appointing cabinet members, the presidential administration noted.

The president “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 designate Babiš as prime minister “without delay” once the matter was resolved.

Business Operations and Legal Issues

Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the nation and other central European states, receiving millions of euros in domestic and European agricultural and other grants, as well as government deals.

Under national legislation, cabinet members are barred from receiving state support or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or stay out of public office.

Past Term and Current Plans

Babiš affirmed he would “follow the regulations” if appointed as prime minister, but did not want to detail how in beforehand because the matter was “an extremely sensitive and private affair for me, and the media will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential ethical issues. He temporarily moved his holdings into trust funds, while keeping certain control over them.

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

Governing Agreement and International Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote 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 likely to strengthen the populist movement in central and eastern Europe and could challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for international relations, also requested that the coalition’s programme include a declaration on the government’s position on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

The president has previously said he would not approve any cabinet candidates who might question the nation's EU and Nato commitments, a condition that the far-right SPD has indicated it will satisfy by nominating non-partisan experts.