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

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn election but lacked a majority in parliament, declared in a social media post that he would not divest his Agrofert conglomerate, which is active in agriculture, food processing, and chemicals.

“I have repeatedly said I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with national and European laws,” the billionaire commented. “This is different from selling a roll in a bakeshop.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove conflicts of interest arising from his corporate dealings before assuming the role of prime minister.

The Czech constitution “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement added, stating that Pavel was ready to designate Babiš as prime minister “immediately” once the matter was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert group, function in the nation and other regional countries, benefiting from substantial funds in domestic and European farming and other grants, as well as public contracts.

Under Czech law, government ministers cannot receiving public aid or agreements. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, decline government deals, or stay out of government.

Previous Term and Present Plans

Babiš affirmed he would “abide by the laws” if appointed as premier, but did not want to detail how in advance because the matter was “an extremely sensitive and private affair for me, and the media will always criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over possible conflicts of interest. 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 again the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but refused to disclose details.

Governing Deal and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The incoming administration, if confirmed, is likely to bolster the populist bloc in central and eastern Europe and could strain western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for international relations, also requested that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, including a pledge to meeting alliance duties.

The president has previously said he would not endorse any ministerial nominees who might question the Czech Republic’s international alliances, a condition that the far-right SPD has indicated it will satisfy by nominating independent technocrats.