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Andrej Babiš, the self-proclaimed billionaire that won last month's Czech election, has refused to sell his vast business interests, while insisting he will resolve a conflict of interest that might block him from taking the role of prime minister.

Position on Business Holdings

Babiš, whose political movement came first in the autumn vote but did not secure a parliamentary majority, stated in a social media post that he will not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“I have consistently stated I will not sell Agrofert. I have consistently stated I will resolve the ethical issue in accordance with national and EU regulations,” Babiš commented. “This is not like selling a roll in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will eliminate conflicts of interest arising from his business activities before assuming the role of premier.

The Czech constitution “explicitly requires the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The head of state “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was ready to designate Babiš as prime minister “without delay” once the matter was resolved.

Corporate Activities and Legal Concerns

Babiš's numerous companies, primarily under the Agrofert group, operate in the nation and other regional countries, benefiting from millions of euros in national and EU farming and other grants, as well as government deals.

Under national legislation, cabinet members are barred from receiving public aid or agreements. The anti-corruption organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or not enter government.

Past Term and Present Intentions

Babiš affirmed he would “abide by the regulations” if selected as premier, but did not want to explain how in advance because the issue was “an highly personal and personal matter for me, and journalists will invariably question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over possible ethical issues. He temporarily moved his assets into trust funds, while keeping some influence over them.

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

Governing Deal and Foreign Policy Consequences

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to strengthen the populist bloc in central and eastern Europe and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme add a statement on the official stance on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

The president has previously said he would not approve any cabinet candidates who might question the Czech Republic’s international alliances, a condition that the ultra-conservative party has said it will meet by proposing independent technocrats.