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Andrej Babiš, the self-proclaimed billionaire that won the recent Czech election, has refused to offload his extensive business interests, while insisting he will resolve a conflict of interest that could prevent him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose political movement came first in the autumn vote but did not secure a majority in parliament, declared in a online statement that he would not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“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 commented. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will eliminate ethical conflicts stemming from his business activities before being appointed prime minister.

The national charter “clearly mandates the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, the presidential administration explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to designate Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, primarily under the Agrofert group, operate in the nation and other regional countries, benefiting from millions of euros in domestic and European farming and other subsidies, as well as public contracts.

Under Czech law, cabinet members are barred from receiving public aid or contracts. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, refuse government deals, or stay out of government.

Past Tenure and Present Plans

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

During his initial tenure as premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential conflicts of interest. He placed his holdings into trust funds, while retaining some influence over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but declined to reveal details.

Governing Deal and International Implications

The wealthy politician has signed a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if approved, is expected to bolster the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda add a declaration on the government’s position on the conflict in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has previously said he would not approve any cabinet candidates who might question the nation's international alliances, a requirement that the ultra-conservative party has said it will satisfy by nominating non-partisan experts.