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Andrej Babiš, the self-styled billionaire that won the recent Czech election, has refused to offload his vast business interests, while asserting he will resolve a conflict of interest that might prevent him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn vote but did not secure a parliamentary majority, stated in a online statement that he would not divest his Agrofert group, which is active in agriculture, food production, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly said I will resolve the ethical issue in compliance with Czech and European laws,” the billionaire commented. “This is different from selling a roll in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, stated that the elderly populist must publicly explain how he will remove ethical conflicts stemming from his business activities before being appointed premier.

The national charter “clearly mandates the president to consider the possible emergence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office noted.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the matter was settled.

Business Operations and Legal Issues

Babiš's numerous companies, primarily under the Agrofert umbrella, operate in the nation and other central European states, receiving substantial funds in domestic and European farming and other grants, as well as government deals.

Under Czech law, government ministers are barred from obtaining state support or agreements. The anti-corruption organization Transparency International has stated that to avoid a ethical breach, Babiš must either divest, decline government deals, or stay out of public office.

Previous Tenure and Present Intentions

Babiš said he would “abide by the regulations” if selected as prime minister, but did not want to detail how in advance because the issue was “an extremely sensitive and private affair for me, and journalists will invariably question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential ethical issues. He temporarily moved his assets into trust funds, while keeping some influence over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but refused to reveal specifics.

Coalition Deal and International Implications

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if confirmed, is expected to bolster the populist movement in central and eastern Europe and could challenge backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for foreign policy, also requested that the government agenda include a declaration on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has previously stated he would not endorse any cabinet candidates who might question the Czech Republic’s international alliances, a requirement that the far-right SPD has said it will meet by nominating non-partisan experts.