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

Position on Business Holdings

Babiš, whose ANO party came first in the October vote but did not secure a majority in parliament, declared in a online statement that he would not divest his Agrofert conglomerate, which is active in agriculture, food production, and chemicals.

“I have consistently stated I will not sell Agrofert. I have consistently stated I will address the ethical issue in accordance with national and EU regulations,” Babiš commented. “This is different from selling a pastry in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove ethical conflicts stemming from his business activities before assuming the role of premier.

The national charter “explicitly requires the head of state to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration noted.

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 appoint Babiš as premier “without delay” once the issue was settled.

Corporate Activities and Legal Issues

Babiš's numerous firms, primarily under the Agrofert umbrella, function in the nation and other regional states, benefiting from substantial funds in domestic and European farming and other subsidies, as well as government deals.

Under Czech law, cabinet members are barred from obtaining public aid or agreements. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, decline public contracts, or stay out of public office.

Previous Tenure and Present Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but did not want to detail how in beforehand because the matter was “an extremely sensitive and personal matter for me, and journalists will always criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over potential ethical issues. He temporarily moved his assets into trust funds, while keeping some influence over them.

A court and the EU executive both ruled that this did not suffice. Babiš stated recently that he was again the sole owner of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but refused to reveal specifics.

Coalition Agreement and Foreign Policy Consequences

The wealthy politician has signed a governing pact 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 Green Deal.

The new government, if approved, is expected to bolster the populist movement in the region and could strain western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

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

The head of state has previously stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will meet by nominating non-partisan experts.