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Andrej Babiš, the self-proclaimed billionaire that secured victory in the recent Czech election, has refused to sell his extensive business interests, while asserting he will resolve a conflict of interest that might prevent him from taking the role of prime minister.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn election but did not secure a parliamentary majority, declared in a social media post that he would not divest his Agrofert conglomerate, which is active in agriculture, food production, and chemical industries.

“I have repeatedly stated I will not sell Agrofert. I have consistently said I will address the conflict of interest in accordance with Czech and European laws,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, stated that the elderly political figure must clarify openly how he will remove conflicts of interest stemming from his business activities before being appointed prime minister.

The national charter “clearly mandates the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when selecting government ministers, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, stating that Pavel was prepared to appoint Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert group, operate 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 cannot receiving public aid or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, decline government deals, or not enter public office.

Past Term and Present Intentions

Babiš affirmed he would “follow the laws” if appointed as prime minister, but declined to explain how in advance because the issue was “an highly personal and private affair for me, and the media will invariably question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over potential ethical issues. He temporarily moved his assets into trust funds, while retaining some influence over them.

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

Coalition Deal and Foreign Policy Implications

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated 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 the region and might challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also demanded that the coalition’s programme add a statement on the government’s position on Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.

The head of state has previously said he would not endorse any ministerial nominees who might doubt the Czech Republic’s international alliances, a condition that the far-right SPD has said it will satisfy by nominating non-partisan experts.