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Andrej Babiš, the self-proclaimed billionaire who won the recent parliamentary vote, has declined to offload his vast business interests, while insisting he will resolve a conflict of interest that might block him from assuming the role of prime minister.

Stance on Corporate Empire

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

“I have consistently said I will not sell Agrofert. I have consistently stated I will address the conflict of interest in compliance with Czech and EU regulations,” the billionaire commented. “This is different from selling a pastry in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will remove conflicts of interest stemming from his business activities before being appointed premier.

The national charter “clearly mandates the head of state 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 meet his statutory duties”, the announcement said, stating that Pavel was prepared to appoint Babiš as premier “immediately” once the matter was resolved.

Corporate Activities and Legal Issues

Babiš's numerous firms, primarily under the Agrofert group, operate in the Czech Republic and other central European countries, benefiting from substantial funds in domestic and European agricultural and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot obtaining public aid or agreements. The ethics organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, refuse government deals, or not enter public office.

Previous Tenure and Current Intentions

Babiš said he would “follow the regulations” if appointed as premier, but declined to detail how in beforehand because the matter was “an highly personal and private affair for me, and journalists will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential conflicts of interest. He placed his assets into trust funds, while retaining certain control over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but refused to disclose specifics.

Coalition Deal and Foreign Policy Implications

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if confirmed, is expected to bolster the populist bloc in the region and might strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for international relations, also demanded that the coalition’s programme add a statement on the official stance on the conflict in Ukraine, including a pledge to fulfilling alliance duties.

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