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Andrej Babiš, the self-proclaimed billionaire who won the recent Czech election, has declined to offload his extensive corporate assets, while asserting he will resolve a conflict of interest that could prevent him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn vote but lacked a parliamentary majority, declared in a social media post that he will not sell his Agrofert conglomerate, which operates in farming, food production, and chemicals.

“I have consistently said I will never sell Agrofert. I have repeatedly stated I will address the ethical issue in accordance with national and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

President's Demand

The head of state, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will remove ethical conflicts arising from his corporate dealings before assuming the role of premier.

The national charter “explicitly requires the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when appointing cabinet members, the presidential administration noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the announcement said, stating that Pavel was prepared to designate Babiš as premier “immediately” once the matter was resolved.

Corporate Activities and Legal Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the Czech Republic and other central European states, benefiting from millions of euros in domestic and European farming and other grants, as well as government deals.

Under national legislation, cabinet members are barred from obtaining state support or agreements. The anti-corruption watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or stay out of public office.

Previous Term and Current Plans

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

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over possible conflicts of interest. He placed his holdings into fiduciary arrangements, while keeping some influence over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but refused to reveal specifics.

Governing Deal and International Implications

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is likely to bolster the populist bloc in central and eastern Europe and might strain western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the government agenda add a declaration on the government’s position on the conflict in Ukraine, with a pledge to meeting alliance duties.

The president has previously said he would not endorse any ministerial nominees who might doubt the nation's international alliances, a condition that the far-right SPD has said it will meet by proposing non-partisan experts.