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

Position on Corporate Empire

Babiš, whose political movement came first in the October vote but did not secure a majority in parliament, stated in a online statement that he will not sell his Agrofert conglomerate, which operates in farming, food processing, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have consistently said I will address the ethical issue in accordance with Czech and European laws,” the billionaire commented. “This is not like selling a pastry in a bakery.”

President's Demand

The head of state, Petr Pavel, stated that the elderly populist must publicly explain how he will remove ethical conflicts arising from his business activities before being appointed premier.

The national charter “explicitly requires the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, Pavel's office explained.

The head of state “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the announcement added, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was settled.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, primarily under the Agrofert group, function in the Czech Republic and other regional states, receiving millions of euros in domestic and European agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members cannot obtaining state support or agreements. The anti-corruption organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, refuse public contracts, or stay out of government.

Previous Tenure and Present Intentions

Babiš affirmed he would “abide by the laws” if appointed 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 invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over potential ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping certain control over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but declined to disclose details.

Governing Deal and International Implications

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if approved, is likely to strengthen the populist movement in the region and could challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for foreign policy, also requested that the coalition’s programme add a statement on the official stance on the conflict in Ukraine, including a commitment to meeting alliance duties.

The head of state has earlier said he would not endorse any ministerial nominees who might question the nation's EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.