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Andrej Babiš, the self-styled billionaire who won last month's Czech election, has declined to sell his extensive business interests, while insisting he will address a conflict of interest that could prevent him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October vote but lacked a majority in parliament, declared in a online statement that he will not divest his Agrofert group, which operates in farming, food production, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have consistently said I will resolve the ethical issue in compliance with national and EU regulations,” Babiš remarked. “This is different from selling a roll in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will remove conflicts of interest arising from his corporate dealings before being appointed premier.

The Czech constitution “clearly mandates the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office explained.

The head of state “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 prime minister “immediately” once the issue was settled.

Business Operations and Legal Concerns

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

Under Czech law, government ministers cannot obtaining state support or contracts. The ethics watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or not enter public office.

Previous Tenure and Present Intentions

Babiš said 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 private affair for me, and journalists will always question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several court cases and an European inquiry over possible conflicts of interest. He temporarily moved his assets into trust funds, while retaining 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 declined to disclose details.

Governing Deal and International Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if approved, is expected to strengthen the populist bloc in the region and could strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president 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 earlier stated he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has said it will meet by proposing non-partisan experts.