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Andrej Babiš, the self-proclaimed billionaire that secured victory in the recent parliamentary vote, has refused to sell his vast corporate assets, while asserting he will address a ethical dilemma that might block him from taking the position of head of government.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the October election but lacked a majority in parliament, stated in a social media post that he will not divest his Agrofert group, which is active in agriculture, food production, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in compliance with national and European laws,” the billionaire remarked. “This is different from selling a roll in a bakeshop.”

Head of State's Demand

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

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

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional states, benefiting from substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members cannot obtaining public aid or contracts. The ethics organization Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse government deals, or not enter public office.

Previous Tenure and Current Intentions

Babiš said he would “abide by the laws” if selected as prime minister, but did not want to detail how in advance because the matter was “an highly personal and personal matter for me, and the media will invariably criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.

A court and the European Commission both ruled that this was insufficient. Babiš stated last month that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but refused to disclose details.

Governing Agreement and Foreign Policy Implications

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if approved, is expected to bolster the populist bloc in central and eastern Europe and could challenge western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme add a statement on the official stance on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

The head of state has earlier stated he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the far-right SPD has said it will meet by proposing non-partisan experts.