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Andrej Babiš, the self-styled billionaire who secured victory in last month's parliamentary vote, has declined to offload his vast business interests, while insisting he will resolve a conflict of interest that might prevent him from assuming the role of head of government.

Position on Corporate Empire

Babiš, whose political movement came first in the October election but did not secure a majority in parliament, stated in a social media post that he would not divest his Agrofert conglomerate, which operates in agriculture, food production, and chemicals.

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

President's Demand

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove ethical conflicts arising from his business activities before being appointed premier.

The national charter “clearly mandates the president to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, the presidential administration explained.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement said, stating that Pavel was prepared to designate Babiš as premier “without delay” once the matter was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European states, receiving substantial funds in national and EU farming and other subsidies, as well as government deals.

Under national legislation, cabinet members are barred from obtaining public aid or contracts. The anti-corruption organization Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, refuse public contracts, or stay out of government.

Past Term and Current Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but declined to detail how in advance because the matter was “an extremely sensitive and personal matter for me, and journalists will invariably criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over potential ethical issues. He placed his assets into fiduciary arrangements, while retaining some influence over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš stated last month that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but declined to disclose details.

Coalition Agreement and International Implications

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if approved, is likely 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 leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for international relations, also demanded that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, with a commitment to fulfilling alliance duties.

The head of state has earlier stated he would not approve any ministerial nominees who might question the nation's EU and Nato commitments, a requirement that the far-right SPD has said it will meet by proposing independent technocrats.