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Andrej Babiš, the self-styled billionaire that won the recent parliamentary vote, has refused to offload his extensive corporate assets, while insisting he will address a conflict of interest that might prevent him from assuming the position of head of government.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but lacked a majority in parliament, declared in a social media post that he will not sell his Agrofert conglomerate, which operates in farming, food processing, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with Czech and European laws,” the billionaire remarked. “This is different from selling a pastry in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will remove ethical conflicts arising from his corporate dealings before assuming the role of premier.

The national charter “explicitly requires the president to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

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

Corporate Activities and Legal Concerns

Babiš's several hundred companies, primarily under the Agrofert group, function in the Czech Republic and other regional countries, benefiting from substantial funds in national and EU farming and other subsidies, as well as government deals.

Under Czech law, cabinet members cannot obtaining state support or agreements. The anti-corruption organization Transparency International has stated that to avoid a ethical breach, Babiš must either divest, decline public contracts, or not enter public office.

Previous Term and Current Plans

Babiš affirmed he would “follow the laws” if appointed as premier, but declined to detail how in advance because the matter was “an extremely sensitive and personal matter for me, and the media will always criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible ethical issues. He placed his assets into fiduciary arrangements, while keeping certain control over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but declined to reveal specifics.

Coalition Agreement and International Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if confirmed, is expected to bolster the populist bloc in the region and might challenge western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda add a declaration on the government’s position on Russia’s war in Ukraine, including a commitment to meeting Nato obligations.

The president has previously said he would not endorse any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by proposing non-partisan experts.