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Andrej Babiš, the self-proclaimed billionaire who won the recent Czech election, has refused to sell his vast business interests, while asserting he will address a conflict of interest that could prevent him from assuming the position of prime minister.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a majority in parliament, stated in a social media post that he would not divest his Agrofert group, which operates in agriculture, food production, and chemicals.

“I have consistently said I will not sell Agrofert. I have repeatedly said I will address the conflict of interest in accordance with national and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the elderly political figure must publicly explain how he will remove ethical conflicts arising from his business activities before assuming the role of prime minister.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a ethical issue and the ways to address it” when selecting cabinet members, the presidential administration noted.

The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was ready to appoint Babiš as premier “immediately” once the matter was settled.

Business Operations and Legal Issues

Babiš's several hundred firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European countries, benefiting from substantial funds in national and EU farming and other grants, as well as public contracts.

Under Czech law, government ministers are barred from obtaining state support 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 public office.

Previous Tenure and Current Plans

Babiš said he would “follow the regulations” if selected 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 first term as prime minister, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential conflicts of interest. He placed his assets into fiduciary arrangements, while retaining some influence over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš stated last month that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but refused to disclose specifics.

Governing Deal and International Consequences

The wealthy politician has signed a governing pact with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to bolster the populist movement in the region and might challenge 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 has a role for international relations, also demanded that the coalition’s programme include a statement on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The president has earlier stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s international alliances, a requirement that the ultra-conservative party has said it will meet by nominating independent technocrats.