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Andrej Babiš, the self-styled billionaire that secured victory in last month's parliamentary vote, has refused to offload his extensive corporate assets, while insisting he will resolve a conflict of interest that could block him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose political movement came first in the October vote but did not secure a majority in parliament, declared in a online statement that he will not divest his Agrofert group, which operates in agriculture, food production, and chemicals.

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

Head of State's Demand

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove conflicts of interest arising from his business activities before being appointed premier.

The national charter “clearly mandates the head of state to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's numerous companies, mostly under the Agrofert group, function in the nation and other central European countries, benefiting from substantial funds in national and EU farming and other grants, as well as government deals.

Under Czech law, cabinet members cannot receiving state support or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, decline public contracts, or not enter public office.

Previous Tenure and Current Plans

Babiš affirmed he would “follow the regulations” if appointed as premier, but did not want to explain how in advance because the matter was “an extremely sensitive and private affair for me, and the media will invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over potential conflicts of interest. He placed his holdings into trust funds, while retaining some influence over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš stated last month that he was again the sole owner of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but refused to disclose details.

Coalition Deal and International Implications

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The incoming administration, if approved, is likely to strengthen the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for foreign policy, also demanded that the coalition’s programme include a statement on the government’s position on Russia’s war in Ukraine, with a pledge to meeting Nato obligations.

The head of state has earlier said he would not endorse any cabinet candidates who might doubt the nation's international alliances, a requirement that the ultra-conservative party has indicated it will meet by nominating independent technocrats.