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Andrej Babiš, the self-proclaimed billionaire that won the recent parliamentary vote, has refused to offload his vast business interests, while insisting he will resolve a conflict of interest that could block him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn election but lacked a parliamentary majority, stated in a online statement that he would not divest his Agrofert conglomerate, which is active in farming, food processing, and chemicals.

“I have consistently said I will not sell Agrofert. I have consistently said I will address the conflict of interest in compliance with Czech and European laws,” Babiš remarked. “This is different from selling a pastry in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, announced 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 “explicitly requires the president to consider the potential occurrence of a conflict of interest and the ways to address it” when selecting government ministers, the presidential administration explained.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was prepared to designate Babiš as prime minister “immediately” once the matter was resolved.

Corporate Activities and Legal Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European states, benefiting from substantial funds in national and EU agricultural and other subsidies, as well as public contracts.

Under Czech law, cabinet members cannot receiving state support or contracts. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline government deals, or not enter government.

Previous Term and Current Intentions

Babiš said he would “follow the regulations” if selected as prime minister, but did not want to detail how in advance because the matter was “an extremely sensitive and private affair for me, and the media will always criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over potential conflicts of interest. He placed his assets into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but declined to reveal specifics.

Coalition Deal and International Consequences

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if confirmed, is likely to bolster the populist bloc in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme add a statement on the official stance on Russia’s war in Ukraine, with a commitment to meeting Nato obligations.

The president has previously stated he would not approve any cabinet candidates who might question the nation's international alliances, a requirement that the far-right SPD has said it will meet by nominating non-partisan experts.