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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 corporate assets, while asserting he will resolve a conflict of interest that might block him from assuming the role of prime minister.

Position on Business Holdings

Babiš, whose ANO party came first in the October election but did not secure a majority in parliament, declared in a social media post that he will not divest his Agrofert conglomerate, which is active in agriculture, food production, and chemical industries.

“I have consistently said I will never sell Agrofert. I have consistently stated I will address the ethical issue in accordance with Czech and European laws,” Babiš remarked. “This is different from selling a roll in a bakery.”

President's Demand

The Czech president, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will eliminate ethical conflicts stemming from his business activities before being appointed prime minister.

The national charter “clearly mandates the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, Pavel's office explained.

The head of state “expects clarity 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 matter was resolved.

Corporate Activities and Legal Issues

Babiš's numerous firms, primarily under the Agrofert umbrella, function in the nation and other regional countries, receiving substantial funds in national and EU agricultural and other subsidies, as well as public contracts.

Under national legislation, cabinet members are barred from receiving public aid or agreements. The anti-corruption watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline public contracts, or not enter public office.

Previous Term and Present Plans

Babiš said he would “abide by the laws” if appointed as prime minister, but declined to explain how in beforehand because the matter was “an extremely sensitive and personal matter for me, and the media will invariably criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over possible ethical issues. He temporarily moved his assets into trust funds, while keeping some influence over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to reveal details.

Coalition Deal and Foreign Policy Implications

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if confirmed, is expected to strengthen the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for foreign policy, also demanded that the government agenda include a statement on the official stance on the conflict in Ukraine, including a commitment to fulfilling Nato obligations.

The president has earlier said he would not approve any cabinet candidates who might doubt the nation's international alliances, a condition that the ultra-conservative party has indicated it will meet by nominating independent technocrats.