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Andrej Babiš, the self-styled billionaire who secured victory in the recent Czech election, has refused to sell his extensive business interests, while asserting he will address a ethical dilemma that might prevent him from assuming the role of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the autumn vote but lacked a majority in parliament, declared in a social media post that he would not sell his Agrofert group, which is active in farming, food processing, and chemical industries.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly said I will address the ethical issue in compliance with national and EU regulations,” the billionaire commented. “This is different from selling a pastry in a bakeshop.”

President's Demand

The head of state, Petr Pavel, stated that the elderly populist must publicly explain how he will remove ethical conflicts arising from his corporate dealings before being appointed premier.

The Czech constitution “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, the presidential administration noted.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was ready to designate Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Legal Issues

Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the nation and other central European countries, benefiting from millions of euros in domestic and European farming and other grants, as well as government deals.

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The anti-corruption watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or not enter government.

Previous Tenure and Present Intentions

Babiš said he would “follow the laws” if appointed as prime minister, but declined to detail how in beforehand because the matter was “an extremely sensitive and private affair for me, and journalists will invariably question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential conflicts of interest. He placed his assets into fiduciary arrangements, while keeping some influence over them.

A court and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but declined to reveal details.

Governing Agreement and Foreign Policy Consequences

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if approved, is likely to bolster the populist bloc in the region and might challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for foreign policy, also requested that the government agenda add a declaration on the government’s position on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The head of state has previously said he would not endorse any cabinet candidates who might question the nation's international alliances, a requirement that the ultra-conservative party has said it will satisfy by proposing independent technocrats.