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Andrej Babiš, the self-styled billionaire that won last month's parliamentary vote, has declined to sell his extensive business interests, while insisting he will resolve a ethical dilemma that might prevent him from assuming the position of head of government.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but lacked a majority in parliament, stated in a social media post that he will not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

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

President's Requirement

The Czech president, Petr Pavel, stated that the elderly political figure must publicly explain how he will eliminate conflicts of interest stemming from his corporate dealings before assuming the role of prime minister.

The national charter “clearly mandates the president to consider the potential occurrence of a ethical issue and the ways to address it” when selecting cabinet members, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was ready to designate Babiš as premier “without delay” once the matter was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert group, operate in the Czech Republic and other regional countries, benefiting from substantial funds in domestic and European farming and other grants, as well as government deals.

Under Czech law, cabinet members are barred from obtaining public aid or agreements. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline government deals, or not enter public office.

Previous Term and Present Intentions

Babiš affirmed he would “abide by the regulations” if appointed as premier, but did not want to explain how in advance because the matter was “an extremely sensitive and private affair for me, and journalists will always criticise me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential ethical issues. He placed his holdings into fiduciary arrangements, while keeping certain control over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but refused to reveal specifics.

Governing Deal and Foreign Policy Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, 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 approved, is expected to strengthen the populist movement in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for international relations, also demanded that the coalition’s programme add a declaration on the government’s position on Russia’s war in Ukraine, including a commitment to meeting Nato obligations.

The president has earlier stated he would not endorse any cabinet candidates who might question the nation's international alliances, a condition that the ultra-conservative party has indicated it will satisfy by nominating non-partisan experts.