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Andrej Babiš, the self-styled billionaire who secured victory in last month's Czech election, has refused to sell his extensive corporate assets, while insisting he will address a conflict of interest that might block him from assuming the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn vote but did not secure a parliamentary majority, stated in a online statement that he will not divest his Agrofert group, which is active in agriculture, food processing, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have repeatedly said I will resolve the conflict of interest in accordance with national and European laws,” Babiš remarked. “This is different from selling a roll in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will eliminate conflicts of interest arising from his business activities before assuming the role of premier.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, Pavel's office explained.

The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement added, noting that Pavel was prepared to appoint Babiš as prime minister “immediately” once the issue was resolved.

Corporate Activities and Legal Issues

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

Under national legislation, government ministers are barred from obtaining state support or agreements. The ethics watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or stay out of government.

Past Term and Present Intentions

Babiš affirmed he would “abide by the regulations” if appointed as premier, but declined to explain how in beforehand because the issue was “an highly personal and personal matter for me, and journalists will always criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over potential ethical issues. He temporarily moved his holdings into trust funds, while retaining some influence over them.

A court and the European Commission both determined that this was insufficient. Babiš stated last month that he was again the sole owner of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but refused to disclose details.

Coalition Deal and International Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to strengthen the populist bloc in central and eastern Europe and might strain western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president shares responsibility for international relations, also demanded that the government agenda add a statement on the official stance on Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.

The head of state has previously stated he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a condition that the far-right SPD has said it will satisfy by proposing independent technocrats.