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Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's Czech election, has refused to sell his extensive corporate assets, while insisting he will resolve a conflict of interest that might prevent him from taking the position of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn vote but did not secure a parliamentary majority, declared in a online statement that he will not sell his Agrofert conglomerate, which is active in farming, food production, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly said I will address the ethical issue in accordance with national and EU regulations,” Babiš remarked. “This is different from selling a pastry in a bakery.”

President's Demand

The head of state, Petr Pavel, announced that the elderly populist must clarify openly how he will eliminate conflicts of interest arising from his corporate dealings before assuming the role of prime minister.

The national charter “explicitly requires the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

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

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert group, function in the nation and other central European states, benefiting from millions of euros in domestic and European farming and other subsidies, as well as public contracts.

Under Czech law, government ministers are barred from obtaining public aid or contracts. The ethics organization Transparency International has stated that to avoid a ethical breach, Babiš must either divest, decline public contracts, or stay out of government.

Past Term and Current Plans

Babiš said he would “abide by the regulations” if selected as prime minister, but declined to detail how in beforehand because the matter was “an highly personal and personal matter for me, and the media will always criticise me anyway”.

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

A judicial body and the European Commission both ruled that this was insufficient. Babiš stated recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to disclose details.

Governing Deal and Foreign Policy Consequences

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed 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 contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also requested that the coalition’s programme include a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.

The president has previously said he would not approve any cabinet candidates who might doubt the nation's EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by proposing independent technocrats.