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Andrej Babiš, the self-styled billionaire who won the recent Czech election, has declined to offload his extensive corporate assets, while insisting he will address a conflict of interest that could prevent him from taking the role of head of government.

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 will not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently said I will resolve the ethical issue in compliance with national and EU regulations,” the billionaire remarked. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will eliminate ethical conflicts stemming from his business activities before assuming the role of premier.

The Czech constitution “clearly mandates the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, Pavel's office noted.

The head of state “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, stating that Pavel was prepared to appoint Babiš as prime minister “immediately” once the matter was resolved.

Business Operations and Legal Issues

Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European states, benefiting from millions of euros in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, government ministers cannot receiving state support or agreements. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or stay out of public office.

Previous Term and Present Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but did not want to detail how in advance because the matter was “an highly personal and personal matter for me, and journalists will invariably criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over possible 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 did not suffice. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but declined to reveal specifics.

Coalition Deal and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

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

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme include a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to fulfilling Nato obligations.

The head of state has earlier said he would not approve any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has said it will meet by nominating independent technocrats.