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Andrej Babiš, the self-styled billionaire who secured victory in last month's parliamentary vote, has declined to sell his vast corporate assets, while insisting he will address a conflict of interest that could prevent him from taking the role of prime minister.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the October election but lacked a majority in parliament, declared in a social media post that he will not divest his Agrofert conglomerate, which is active in farming, food production, and chemicals.

“I have consistently said I will never sell Agrofert. I have consistently said I will resolve the ethical issue in accordance with national and EU regulations,” Babiš commented. “This is different from selling a pastry in a bakeshop.”

President's Demand

The head of state, Petr Pavel, stated that the elderly political figure must publicly explain how he will eliminate conflicts of interest arising from his corporate dealings before being appointed prime minister.

The national charter “clearly mandates the head of state to take into account the possible emergence of a conflict of interest and the ways to address it” when selecting government ministers, Pavel's office explained.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the statement added, stating that Pavel was prepared to designate Babiš as prime minister “immediately” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, primarily under the Agrofert group, function in the nation and other regional states, receiving millions of euros in domestic and European farming and other subsidies, as well as government deals.

Under national legislation, government ministers cannot receiving public aid or contracts. The anti-corruption organization Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, decline public contracts, or not enter government.

Previous Term and Present Plans

Babiš affirmed he would “abide by the laws” if selected as premier, but declined to detail how in beforehand because the matter was “an highly personal and private affair for me, and journalists will always question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over possible conflicts of interest. He placed his holdings into fiduciary arrangements, while keeping some influence over them.

A court and the European Commission both determined that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to reveal specifics.

Governing Agreement and Foreign Policy Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The new government, if confirmed, is likely to strengthen the populist movement in central and eastern Europe and could challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

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, with a commitment to fulfilling alliance duties.

The president has previously stated he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has said it will meet by proposing independent technocrats.