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Andrej Babiš, the self-proclaimed billionaire who won last month's parliamentary vote, has declined to offload his extensive corporate assets, while asserting he will resolve a conflict of interest that could prevent him from taking the position of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but lacked a majority in parliament, declared in a online statement that he will not divest his Agrofert group, which is active in farming, food processing, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have consistently said I will resolve the ethical issue in compliance with national and EU regulations,” the billionaire remarked. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will eliminate ethical conflicts arising from his business activities before assuming the role of prime minister.

The Czech constitution “clearly mandates the head of state to take into account the possible emergence of a ethical issue and the ways to address it” when selecting cabinet members, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the announcement said, stating that Pavel was prepared to designate Babiš as prime minister “immediately” once the issue was resolved.

Business Operations and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert group, operate in the Czech Republic and other central European countries, receiving millions of euros in national and EU farming and other subsidies, as well as government deals.

Under national legislation, government ministers cannot obtaining public aid or contracts. The ethics watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse public contracts, or stay out of public office.

Past Tenure and Present Intentions

Babiš affirmed he would “follow the laws” if appointed as prime minister, but did not want to explain how in beforehand because the matter was “an extremely sensitive and personal matter for me, and journalists will always question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over possible conflicts of interest. He placed his holdings into trust funds, while retaining some influence over them.

A court and the European Commission both determined that this was insufficient. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but refused to disclose specifics.

Governing Agreement and International Implications

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if confirmed, is likely to strengthen the populist movement in the region and might strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president shares responsibility for international relations, also requested that the government agenda include a statement on the official stance on Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.

The president has earlier said he would not endorse any ministerial nominees who might doubt the nation's international alliances, a condition that the far-right SPD has said it will satisfy by proposing independent technocrats.