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Andrej Babiš, the self-proclaimed billionaire that won the recent parliamentary vote, has refused to offload his vast business interests, while insisting he will resolve a ethical dilemma that might block him from taking the role of prime minister.

Stance on Business Holdings

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

“I have consistently said I will not sell Agrofert. I have repeatedly said I will address the conflict of interest in compliance with Czech and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will remove conflicts of interest arising from his business activities before being appointed prime minister.

The Czech constitution “explicitly requires the head of state to take into account the possible emergence of a conflict of interest and the ways to address it” when selecting cabinet members, Pavel's office explained.

The president “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement said, stating that Pavel was prepared to designate Babiš as premier “without delay” once the issue was settled.

Business Operations and Legal Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional countries, benefiting from millions of euros in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, government ministers are barred from obtaining public aid or agreements. The anti-corruption organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, decline public contracts, or stay out of government.

Past Tenure and Current Intentions

Babiš said he would “follow the laws” if appointed as premier, but did not want to detail how in beforehand because the issue was “an highly personal and personal matter for me, and the media will always criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several 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 judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but declined to disclose specifics.

Coalition Agreement and Foreign Policy 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 Green Deal.

The incoming administration, if confirmed, is likely to bolster the populist bloc in the region and could strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme add a statement on the official stance on Russia’s war in Ukraine, including a commitment to meeting alliance duties.

The president has previously stated he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has said it will meet by nominating independent technocrats.