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Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's Czech election, has refused to offload his extensive business interests, while asserting he will address a conflict of interest that might block him from taking the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party came first in the autumn election but lacked a parliamentary majority, declared in a online statement that he would not divest his Agrofert group, which operates in agriculture, food processing, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have repeatedly stated I will resolve the ethical issue in compliance with Czech and EU regulations,” the billionaire commented. “This is different from selling a pastry in a bakeshop.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the elderly populist must publicly explain how he will eliminate conflicts of interest arising from his corporate dealings before being appointed prime minister.

The national charter “explicitly requires the head of state to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, Pavel's office explained.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert umbrella, function in the Czech Republic and other regional countries, receiving substantial funds in domestic and European farming and other grants, as well as public contracts.

Under Czech law, government ministers cannot obtaining public aid or contracts. The ethics organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, decline public contracts, or stay out of government.

Past Tenure and Current Plans

Babiš said he would “follow the regulations” if selected as premier, but declined to detail how in advance because the matter was “an extremely sensitive and private affair for me, and journalists will invariably question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over potential conflicts of interest. He temporarily moved his assets into trust funds, while keeping some influence over them.

A court and the EU executive both determined that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but refused to reveal details.

Governing Deal and Foreign Policy Consequences

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if approved, is likely to strengthen the populist bloc in the region and might strain western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for foreign policy, also demanded that the government agenda include a statement on the government’s position on the conflict in Ukraine, with a pledge to meeting alliance duties.

The president has earlier said he would not endorse any cabinet candidates who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.