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Andrej Babiš, the self-styled billionaire who won the recent parliamentary vote, has refused to offload his extensive business interests, while asserting he will resolve a conflict of interest that could block him from assuming the position of prime minister.

Position on Business Holdings

Babiš, whose political movement came first in the autumn vote but did not secure a parliamentary majority, declared in a online statement that he will not sell his Agrofert group, which is active in farming, food processing, and chemical industries.

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

Head of State's Demand

The head of state, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will remove ethical conflicts arising from his business activities before being appointed prime minister.

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

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the announcement said, stating that Pavel was ready to designate Babiš as prime minister “without delay” once the issue was settled.

Business Operations and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the nation and other central European states, receiving substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under national legislation, government ministers cannot receiving state support or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or stay out of public office.

Previous Term and Current Intentions

Babiš said he would “abide by the regulations” if appointed as premier, but did not want to detail how in advance because the issue was “an extremely sensitive and personal matter for me, and the media will invariably criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over potential conflicts of interest. He temporarily moved his holdings into trust funds, while retaining some influence over them.

A judicial body and the European Commission both ruled that this was insufficient. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but declined to reveal specifics.

Governing Deal and International Implications

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The incoming administration, if confirmed, is expected to strengthen the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for international relations, also requested that the government agenda include a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to meeting alliance duties.

The president has previously stated he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has indicated it will meet by nominating independent technocrats.