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Andrej Babiš, the self-styled billionaire who won the recent Czech election, has refused to offload his vast business interests, while insisting he will address a conflict of interest that could prevent him from assuming the position of prime minister.

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the October election but lacked a parliamentary majority, declared in a social media post that he would not sell his Agrofert conglomerate, which operates in farming, food production, and chemicals.

“I have consistently said I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with Czech and European laws,” Babiš remarked. “This is different from selling a roll in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will remove ethical conflicts arising from his business activities before assuming the role of prime minister.

The Czech constitution “explicitly requires the president to take into account the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, Pavel's office noted.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the issue was settled.

Business Operations and Regulatory Concerns

Babiš's several hundred firms, primarily under the Agrofert group, function in the Czech Republic and other regional states, receiving millions of euros in domestic and European agricultural and other subsidies, as well as government deals.

Under national legislation, government ministers cannot receiving state support or agreements. The ethics watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, decline government deals, or stay out of public office.

Previous Tenure and Current Plans

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

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over possible ethical issues. He placed his holdings into trust funds, while keeping some influence over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to disclose specifics.

Coalition Agreement and International Consequences

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

The new government, if approved, is expected to strengthen the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for international relations, also requested that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has previously stated he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has said it will meet by nominating independent technocrats.