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Andrej Babiš, the self-proclaimed billionaire that won the recent parliamentary vote, has refused to offload his vast corporate assets, while insisting he will address a conflict of interest that could prevent him from assuming the role of prime minister.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn vote but lacked a majority in parliament, stated in a social media post that he will not divest his Agrofert conglomerate, which is active in agriculture, food production, and chemical industries.

“I have consistently stated I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with Czech and EU regulations,” the billionaire commented. “This is different from selling a roll in a bakeshop.”

President's Demand

The head of state, Petr Pavel, stated that the elderly populist must publicly explain how he will remove conflicts of interest arising from his corporate dealings before assuming the role of premier.

The national charter “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert umbrella, function in the nation and other central European states, receiving substantial funds in national and EU agricultural and other subsidies, as well as public contracts.

Under Czech law, government ministers are barred from receiving public aid or contracts. The anti-corruption organization Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, decline public contracts, or stay out of government.

Previous Term and Present Plans

Babiš said he would “abide by the regulations” if selected as prime minister, but declined to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will always criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over possible ethical issues. He placed his assets into fiduciary arrangements, while keeping some influence over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to reveal details.

Coalition Deal and International Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if confirmed, is expected to strengthen the populist bloc in the region and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for international relations, also demanded that the coalition’s programme add a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to meeting alliance duties.

The president has previously said 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.