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Andrej Babiš, the self-styled billionaire who won last month's Czech election, has refused to sell his extensive business interests, while insisting he will address a conflict of interest that could block him from taking the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but lacked a parliamentary majority, stated in a online statement that he will not sell his Agrofert conglomerate, which operates in farming, food processing, and chemicals.

“I have consistently stated I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in compliance with national and European laws,” the billionaire commented. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the elderly political figure must clarify openly how he will eliminate conflicts of interest stemming from his corporate dealings before assuming the role of prime minister.

The national charter “explicitly requires the president to take into account the possible emergence of a ethical issue and the ways to address it” when selecting cabinet members, the presidential administration explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was prepared to appoint Babiš as premier “without delay” once the issue was settled.

Corporate Activities and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert group, operate in the Czech Republic and other regional states, receiving millions of euros in domestic and European farming and other subsidies, as well as public contracts.

Under Czech law, government ministers cannot receiving state support or contracts. The ethics organization Transparency International has stated that to avoid 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 “abide by the regulations” if selected as prime minister, but did not want to explain how in advance because the matter was “an highly personal and private affair for me, and journalists will invariably question me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over possible ethical issues. He placed his holdings into fiduciary arrangements, while keeping some influence over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but refused to reveal details.

Governing Agreement and International Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if confirmed, is likely to bolster the populist movement in the region and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme add a statement on the official stance on the conflict in Ukraine, with 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 international alliances, a condition that the ultra-conservative party has indicated it will meet by nominating independent technocrats.