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Andrej Babiš, the self-styled billionaire that won the recent Czech election, has declined to sell his vast corporate assets, while asserting he will address a conflict of interest that could prevent him from assuming the position of head of government.

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the autumn vote but did not secure a parliamentary majority, declared in a online statement that he would not sell his Agrofert group, which operates in farming, food production, and chemicals.

“I have consistently stated I will never sell Agrofert. I have consistently said I will resolve the conflict of interest in accordance with national and European laws,” Babiš commented. “This is different from selling a pastry in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove conflicts of interest stemming from his corporate dealings before being appointed prime minister.

The national charter “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the statement said, noting that Pavel was ready to designate Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Legal Issues

Babiš's several hundred firms, primarily under the Agrofert group, function in the Czech Republic and other central European countries, benefiting from substantial funds in national and EU farming and other grants, as well as government deals.

Under Czech law, cabinet members cannot receiving state support or contracts. The ethics watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either sell, refuse public contracts, or not enter public office.

Past Term and Present Plans

Babiš said he would “follow the regulations” if appointed as prime minister, but did not want to detail how in advance because the issue was “an highly personal and private affair for me, and journalists will invariably question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over potential ethical issues. He placed his holdings into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both ruled that this did not suffice. Babiš stated last month that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but refused to disclose details.

Coalition Agreement and Foreign Policy Implications

The wealthy politician has signed a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The new government, if confirmed, is expected to bolster the populist bloc in the region and could challenge western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, including a pledge to fulfilling Nato obligations.

The head of state has previously said he would not approve any cabinet candidates who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has said it will satisfy by nominating non-partisan experts.