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Andrej Babiš, the self-styled billionaire that won last month's parliamentary vote, has refused to sell his vast business interests, while asserting he will address a conflict of interest that might block him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but did not secure a parliamentary majority, declared in a social media post that he would not sell his Agrofert group, which operates in agriculture, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have repeatedly said I will resolve the ethical issue in compliance with national and European laws,” the billionaire remarked. “This is not like selling a pastry in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will remove conflicts of interest arising from his business activities before assuming the role of premier.

The national charter “clearly mandates the president to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, Pavel's office noted.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the statement said, noting that Pavel was ready to appoint Babiš as prime minister “without delay” once the matter was resolved.

Business Operations and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert umbrella, function in the Czech Republic and other regional states, benefiting from substantial funds in national and EU farming and other subsidies, as well as government deals.

Under Czech law, government ministers are barred from receiving public aid or agreements. The anti-corruption organization Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or stay out of government.

Past Tenure and Current Intentions

Babiš said he would “follow the regulations” if selected as premier, but declined to detail how in advance because the issue was “an highly personal and personal matter for me, and the media will always criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but declined to reveal details.

Coalition Agreement and International Implications

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, 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 new government, if approved, is expected to bolster the populist bloc in central and eastern Europe and could challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme include a declaration on the official stance on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.

The president has previously said he would not approve any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has indicated it will satisfy by proposing independent technocrats.