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Andrej Babiš, the self-styled billionaire that secured victory in last month's Czech election, has refused to sell his extensive business interests, while asserting he will address a conflict of interest that could block him from assuming the role of head of government.

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the October election but did not secure a parliamentary majority, stated in a online statement that he would not divest his Agrofert group, which operates in agriculture, food processing, and chemicals.

“I have consistently stated I will not sell Agrofert. I have consistently 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.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will eliminate ethical conflicts stemming from his corporate dealings before assuming the role of premier.

The national charter “clearly mandates the head of state to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, noting that Pavel was ready to appoint Babiš as prime minister “immediately” once the matter was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred firms, mostly under the Agrofert group, operate in the nation and other central European countries, benefiting from millions of euros in national and EU farming and other subsidies, as well as government deals.

Under national legislation, government ministers cannot obtaining state support or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or not enter public office.

Past Term and Present Intentions

Babiš affirmed he would “abide by the laws” if selected as premier, but did not want to detail how in beforehand because the issue was “an highly personal and personal matter for me, and journalists will always criticise me regardless”.

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

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

Governing Agreement and Foreign Policy Implications

The wealthy politician has signed a governing pact with two rightwing fringe parties, 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 campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is expected 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 leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for foreign policy, also requested that the government agenda include a statement on the government’s position on the conflict in Ukraine, with a commitment to fulfilling Nato obligations.

The president has previously stated he would not approve any cabinet candidates who might doubt the nation's EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by proposing independent technocrats.