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Andrej Babiš, the self-proclaimed billionaire who secured victory in last month's Czech election, has refused to offload his extensive corporate assets, while insisting he will address a conflict of interest that might prevent him from assuming the role of prime minister.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the October vote but lacked a majority in parliament, declared in a social media post that he will not divest his Agrofert group, which is active in farming, food processing, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with national and European laws,” the billionaire remarked. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will eliminate conflicts of interest arising from his business activities before being appointed premier.

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the announcement said, noting that Pavel was ready to designate Babiš as prime minister “immediately” once the matter was settled.

Corporate Activities and Legal Concerns

Babiš's several hundred companies, mostly under the Agrofert group, function 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 government deals.

Under national legislation, cabinet members cannot receiving public aid or contracts. The ethics watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, refuse government deals, or stay out of government.

Previous Term and Present Plans

Babiš affirmed he would “follow the laws” if selected as prime minister, but did not want to detail how in beforehand because the issue was “an highly personal and private affair for me, and the media will always criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over potential ethical issues. He temporarily moved his holdings into trust funds, while keeping certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš stated recently that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but declined to reveal specifics.

Coalition Deal and International Consequences

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The incoming administration, if approved, is expected to strengthen the populist movement in the region and might challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also demanded that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, with a commitment to meeting Nato obligations.

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 condition that the ultra-conservative party has said it will satisfy by proposing independent technocrats.