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Andrej Babiš, the self-styled billionaire that secured victory in last month's Czech election, has declined to offload his extensive business interests, while asserting he will resolve a ethical dilemma that might prevent him from assuming the role of prime minister.

Stance on Corporate Empire

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

“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 remarked. “This is not like selling a pastry in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will remove conflicts of interest arising from his business activities before assuming the role of premier.

The national charter “explicitly requires the president to consider the potential occurrence of a conflict of interest and the ways to address it” when appointing government ministers, Pavel's office explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was ready to designate Babiš as prime minister “immediately” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert group, operate in the Czech Republic and other central European states, receiving millions of euros in national and EU agricultural and other subsidies, as well as public contracts.

Under national legislation, government ministers are barred from obtaining public aid or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse public contracts, or stay out of public office.

Past Term and Present Plans

Babiš said he would “abide by the laws” if appointed as prime minister, but did not want to explain how in beforehand because the issue was “an highly personal and private affair for me, and the media will always criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over possible conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

A court and the EU executive both determined that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but refused to reveal specifics.

Governing Deal and Foreign Policy Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if approved, is likely to strengthen the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for international relations, also requested that the government agenda include a statement on the government’s position on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

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 said it will meet by nominating independent technocrats.