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Andrej Babiš, the self-proclaimed billionaire who secured victory in last month's parliamentary vote, has refused to sell his vast business interests, while asserting he will address a conflict of interest that might prevent him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October vote but did not secure a parliamentary majority, declared in a social media post that he would not divest his Agrofert group, which is active in agriculture, food production, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with Czech and European laws,” the billionaire commented. “This is not like selling a pastry in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will eliminate conflicts of interest stemming from his business activities before assuming the role of premier.

The national charter “explicitly requires the president to take into account the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, the presidential administration explained.

The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, noting that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the nation and other regional states, receiving substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under national legislation, cabinet members cannot obtaining state support or contracts. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or stay out of government.

Past Term and Present Plans

Babiš said he would “abide by the regulations” if selected as premier, but did not want to detail how in beforehand because the issue was “an extremely sensitive and personal matter for me, and journalists will invariably question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several court cases and an European inquiry over possible conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

A court 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 prevent a ethical problem, but refused to disclose details.

Coalition Deal and International Implications

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The new government, if confirmed, is expected to bolster the populist bloc in the region and might strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the government agenda add a declaration on the official stance on Russia’s war in Ukraine, with a pledge to meeting alliance duties.

The head of state has earlier stated he would not approve any ministerial nominees who might doubt the nation's international alliances, a requirement that the ultra-conservative party has indicated it will satisfy by proposing non-partisan experts.