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Andrej Babiš, the self-styled billionaire that secured victory in last month's parliamentary vote, has refused to sell his extensive business interests, while asserting he will address a conflict of interest that could block him from assuming the role of prime minister.

Position on Business Holdings

Babiš, whose political movement came first in the October vote but did not secure a parliamentary majority, declared in a online statement that he would not divest his Agrofert group, which is active in farming, food processing, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have consistently stated I will address the conflict of interest in accordance with national and EU regulations,” the billionaire remarked. “This is different from selling a roll in a bakery.”

President's Requirement

The head of state, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will eliminate conflicts of interest arising from his corporate dealings before being appointed premier.

The Czech constitution “explicitly requires the head of state to take into account the possible emergence of a conflict of interest and the ways to address it” when selecting government ministers, Pavel's office explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement added, noting that Pavel was prepared to appoint Babiš as premier “without delay” once the matter was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European countries, receiving millions of euros in national and EU agricultural and other grants, as well as government deals.

Under national legislation, government ministers are barred from receiving public aid or agreements. The anti-corruption organization 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 Present Intentions

Babiš said he would “follow the laws” if selected as premier, but declined to explain how in advance because the issue was “an extremely sensitive and personal matter for me, and journalists will invariably question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over potential conflicts of interest. He placed his assets into fiduciary arrangements, while retaining certain control over them.

A court and the European Commission both determined that this was insufficient. Babiš stated recently that he was once more the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to disclose details.

Coalition Agreement and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement 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 primarily campaigned against the EU’s Green Deal.

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

Pavel, who as president has a role for international relations, also requested that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, including a pledge to fulfilling Nato obligations.

The president has earlier stated he would not approve any cabinet candidates who might question the nation's international alliances, a requirement that the far-right SPD has said it will satisfy by nominating non-partisan experts.