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Andrej Babiš, the self-styled billionaire who secured victory in the recent parliamentary vote, has declined to sell his vast business interests, while insisting he will address a conflict of interest that might block him from assuming the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party came first in the October vote but lacked a parliamentary majority, declared in a online statement that he would not sell his Agrofert group, which is active in farming, food production, and chemicals.

“I have consistently stated I will not sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with Czech and European laws,” the billionaire commented. “This is different from selling a roll in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, stated that the elderly populist must publicly explain how he will eliminate conflicts of interest stemming from his corporate dealings before assuming the role of premier.

The Czech constitution “explicitly requires the president to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting government ministers, Pavel's office noted.

The president “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was prepared to designate Babiš as premier “immediately” once the issue was resolved.

Business Operations and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, operate in the nation and other central European countries, benefiting from millions of euros in domestic and European agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers are barred from obtaining state support or agreements. The ethics organization Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, decline public contracts, or stay out of public office.

Past Tenure and Present Plans

Babiš affirmed he would “follow the regulations” if selected as premier, but declined to explain how in advance because the matter was “an highly personal and personal matter for me, and the media will invariably question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several court cases and an European inquiry over possible conflicts of interest. He placed his assets into trust funds, while keeping some influence over them.

A court and the European Commission both determined that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to reveal specifics.

Coalition Deal and Foreign Policy Consequences

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly 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 incoming administration, if approved, is likely to strengthen the populist bloc in the region and could strain western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme add a statement on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The president has earlier stated he would not approve any cabinet candidates who might question the Czech Republic’s international alliances, a condition that the far-right SPD has indicated it will satisfy by nominating non-partisan experts.