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Andrej Babiš, the self-styled billionaire that won the recent Czech election, has refused to offload his extensive corporate assets, while asserting he will resolve a conflict of interest that could block him from taking the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the October vote but lacked a parliamentary majority, stated in a social media post that he would not divest his Agrofert group, which operates in agriculture, food processing, and chemicals.

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

Head of State's Demand

The Czech president, Petr Pavel, stated that the elderly populist must publicly explain how he will eliminate ethical conflicts stemming from his business activities before assuming the role of prime minister.

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a conflict of interest and the ways to address it” when appointing government ministers, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was ready to appoint Babiš as premier “without delay” once the matter was resolved.

Business Operations and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert umbrella, function in the Czech Republic and other regional countries, receiving millions of euros in domestic and European farming and other grants, as well as public contracts.

Under national legislation, cabinet members are barred from obtaining public aid or contracts. The ethics watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, refuse public contracts, or not enter government.

Past Tenure and Current Intentions

Babiš affirmed he would “abide by the laws” if appointed as premier, but did not want to explain how in advance because the issue was “an highly personal and private affair for me, and the media will invariably criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while retaining some influence over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš confirmed last month that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but declined to disclose specifics.

Governing Deal and International Implications

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The new government, if approved, is expected to strengthen the populist movement in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state has a role for international relations, also demanded that the coalition’s programme add a declaration on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has earlier said he would not approve any cabinet candidates who might doubt the nation's international alliances, a condition that the ultra-conservative party has indicated it will satisfy by proposing independent technocrats.