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

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the October election but lacked a parliamentary majority, stated in a online statement that he will not divest his Agrofert group, which operates in agriculture, food production, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will resolve the conflict of interest in compliance with national and European laws,” Babiš commented. “This is not like selling a roll in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will remove ethical conflicts arising from his business activities before being appointed prime minister.

The national charter “explicitly requires the head of state to consider the potential occurrence of a conflict of interest and the ways to address it” when appointing government ministers, the presidential administration explained.

The president “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was prepared to designate Babiš as premier “immediately” once the matter was resolved.

Business Operations and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the Czech Republic and other regional countries, benefiting from substantial funds in domestic and European agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members are barred from obtaining public aid or contracts. The ethics organization Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, refuse government deals, or not enter public office.

Past Tenure and Current Intentions

Babiš affirmed he would “abide by the laws” if selected as prime minister, but declined to explain how in advance because the issue was “an highly personal and personal matter for me, and the media will invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible conflicts of interest. He placed his holdings into fiduciary arrangements, while keeping certain control over them.

A court and the European Commission both ruled that this was insufficient. Babiš confirmed last month that he was once more the sole owner of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but declined to disclose specifics.

Coalition Deal and International Consequences

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

The incoming administration, if approved, is likely to bolster the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for international relations, also requested that the government agenda add a statement on the official stance on the conflict in Ukraine, with a pledge to meeting alliance duties.

The president has earlier stated he would not endorse any cabinet candidates who might question the nation's international alliances, a condition that the far-right SPD has said it will satisfy by proposing independent technocrats.