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Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's parliamentary vote, has declined to sell his vast business interests, while insisting he will address a conflict of interest that might prevent him from taking the position of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the autumn election but did not secure a parliamentary majority, declared in a social media post that he will not sell his Agrofert conglomerate, which is active in agriculture, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently said I will address the conflict of interest in compliance with Czech and European laws,” the billionaire commented. “This is different from selling a pastry 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 stemming from his business activities before being appointed premier.

The national charter “explicitly requires the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, Pavel's office explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was ready to appoint Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, primarily under the Agrofert umbrella, operate in the Czech Republic and other central European states, benefiting from substantial funds in domestic and European farming and other grants, as well as public contracts.

Under national legislation, government ministers are barred from obtaining public aid or agreements. The anti-corruption organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, refuse public contracts, or not enter government.

Previous Tenure and Current Plans

Babiš said he would “abide by the laws” if appointed as premier, but declined to explain how in beforehand because the matter was “an extremely sensitive and private affair for me, and journalists will invariably question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential conflicts of interest. He placed his assets into trust funds, while retaining certain control over them.

A court and the European Commission both determined that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to reveal specifics.

Coalition Agreement and International Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to strengthen the populist bloc in the region and might challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

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

The president has earlier stated he would not endorse any cabinet candidates who might doubt the nation's EU and Nato commitments, a requirement that the far-right SPD has indicated it will satisfy by proposing non-partisan experts.