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Andrej Babiš, the self-proclaimed billionaire that won the recent parliamentary vote, has refused to offload his vast business interests, while insisting he will resolve a conflict of interest that might block him from taking the position of prime minister.

Stance on Corporate Empire

Babiš, whose political movement came first in the October vote but did not secure a parliamentary majority, declared in a social media post that he would not divest his Agrofert group, which is active in agriculture, food production, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have consistently stated I will address the conflict of interest in compliance with national and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will remove conflicts of interest stemming from his corporate dealings before assuming the role of premier.

The national charter “clearly mandates the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, Pavel's office noted.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the announcement said, stating that Pavel was prepared to designate Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert umbrella, operate in the nation and other regional countries, benefiting from millions of euros in domestic and European farming and other subsidies, as well as government deals.

Under Czech law, cabinet members cannot obtaining state support or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline public contracts, or stay out of public office.

Previous Term and Current Intentions

Babiš said he would “follow the regulations” if appointed as premier, but declined to explain how in advance because the matter was “an highly personal and private affair for me, and journalists will always question me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over possible ethical issues. He temporarily moved his assets into trust funds, while keeping certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to disclose specifics.

Coalition Deal and Foreign Policy Implications

The billionaire populist has signed a governing pact with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

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

Pavel, who as president shares responsibility for international relations, also demanded that the government agenda add a declaration on the government’s position on the conflict in Ukraine, including a commitment to meeting alliance duties.

The head of state has earlier stated he would not approve any cabinet candidates who might question the nation's EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will meet by proposing independent technocrats.