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Andrej Babiš, the self-proclaimed billionaire that won last month's parliamentary vote, has refused to sell his vast corporate assets, while asserting he will resolve a conflict of interest that could prevent him from taking the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party came first in the October election but lacked a parliamentary majority, stated in a online statement that he will not sell his Agrofert conglomerate, which operates in farming, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have consistently said I will address the conflict of interest in accordance with Czech and European laws,” the billionaire commented. “This is not like selling a roll in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will eliminate ethical conflicts arising from his corporate dealings before assuming the role of prime minister.

The Czech constitution “explicitly requires the head of state to consider the possible emergence of a ethical issue and the ways to address it” when selecting cabinet members, Pavel's office explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was ready to appoint Babiš as premier “without delay” once the matter was settled.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert group, operate in the Czech Republic and other regional states, receiving millions of euros in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, cabinet members cannot receiving public aid or contracts. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse public contracts, or stay out of public office.

Past Tenure and Present Intentions

Babiš said he would “abide by the laws” if appointed as prime minister, but did not want to explain how in advance because the issue was “an extremely sensitive and personal matter for me, and the media will always criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over possible ethical issues. He placed his holdings into fiduciary arrangements, while retaining some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated recently that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but refused to reveal specifics.

Coalition Agreement and International Consequences

The billionaire populist has signed a governing pact with two minor right-leaning groups, the ultra-conservative, 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 confirmed, is expected to strengthen the populist bloc in central and eastern Europe and might strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the government agenda include a statement on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling alliance duties.

The president has previously said he would not approve any ministerial nominees who might doubt 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.