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Andrej Babiš, the self-styled billionaire that secured victory in the recent Czech election, has refused to sell his vast corporate assets, while insisting he will address a conflict of interest that might block him from assuming the position of prime minister.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn vote but lacked a parliamentary majority, stated in a online statement that he would not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.

“I have consistently said I will not sell Agrofert. I have repeatedly said I will resolve the conflict of interest in accordance with Czech and EU regulations,” Babiš commented. “This is different from selling a roll in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will remove conflicts of interest arising from his business activities before assuming the role of premier.

The national charter “clearly mandates the president to consider the possible emergence of a conflict of interest and the ways to address it” when appointing cabinet members, the presidential administration explained.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, noting that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional countries, receiving substantial funds in national and EU farming and other grants, as well as government deals.

Under Czech law, cabinet members cannot receiving public aid or contracts. The anti-corruption organization Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline government deals, or stay out of government.

Past Term and Current Plans

Babiš affirmed he would “follow the laws” if appointed as premier, but did not want to explain how in advance because the matter was “an highly personal and personal matter for me, and journalists will invariably criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over possible ethical issues. He placed his holdings into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to disclose specifics.

Coalition Agreement and International Implications

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if approved, 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 called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for international relations, also demanded that the government agenda include a declaration on the government’s position on the conflict in Ukraine, with a pledge to fulfilling Nato obligations.

The president has earlier said he would not approve any ministerial nominees who might doubt the nation's international alliances, a requirement that the far-right SPD has indicated it will meet by nominating independent technocrats.