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Andrej Babiš, the self-styled billionaire that won last month's Czech election, has refused to offload his extensive corporate assets, while insisting he will resolve a conflict of interest that could prevent him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn election but lacked a parliamentary majority, stated in a online statement that he will not sell his Agrofert group, which is active in agriculture, food processing, and chemicals.

“I have consistently stated I will never sell Agrofert. I have repeatedly said I will address the ethical issue in accordance with national and European laws,” the billionaire commented. “This is not like selling a roll in a bakery.”

President's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove ethical conflicts arising from his corporate dealings before being appointed prime minister.

The Czech constitution “clearly mandates the president to take into account the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, Pavel's office explained.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was ready to appoint Babiš as prime minister “immediately” once the matter was resolved.

Business Operations and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert group, operate in the nation and other regional states, benefiting from millions of euros in domestic and European farming and other subsidies, as well as government deals.

Under Czech law, government ministers are barred from obtaining public aid or agreements. The anti-corruption watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either sell, refuse government deals, or stay out of government.

Previous Term and Current Intentions

Babiš said he would “abide by the laws” if appointed as premier, but did not want to detail how in advance because the issue was “an highly personal and personal matter for me, and journalists will always question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over possible conflicts of interest. He placed his holdings into trust funds, while keeping some influence over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but refused to reveal details.

Governing Agreement and Foreign Policy Implications

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the far-right, 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 environmental policy.

The new government, if confirmed, is expected to bolster the populist movement in central and eastern Europe and could strain western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for international relations, also demanded that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, including a commitment to meeting Nato obligations.

The president has previously said he would not endorse 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 nominating independent technocrats.