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Andrej Babiš, the self-proclaimed billionaire who secured victory in last month's Czech election, has refused to sell his vast business interests, while asserting he will resolve a ethical dilemma that could block him from assuming the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the October election but lacked a parliamentary majority, stated in a online statement that he will not divest his Agrofert group, which operates in agriculture, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with national and European laws,” Babiš remarked. “This is different from selling a roll in a bakery.”

President's Requirement

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove ethical conflicts stemming from his business activities 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 ways to address it” when appointing cabinet members, Pavel's office noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, stating that Pavel was prepared to appoint Babiš as premier “without delay” once the matter was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, mostly under the Agrofert group, function in the Czech Republic and other regional countries, receiving millions of euros in national and EU agricultural and other grants, as well as government deals.

Under Czech law, cabinet members cannot receiving state support or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or not enter public office.

Past Term and Present Intentions

Babiš affirmed he would “follow the regulations” if appointed as premier, but declined to detail how in advance because the issue was “an highly personal and private affair for me, and the media will always criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over potential conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while retaining some influence over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but declined to disclose specifics.

Coalition Agreement and International Implications

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if confirmed, is expected to strengthen the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also requested that the government agenda add a statement on the official stance on Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.

The head of state has earlier said he would not approve any ministerial nominees who might doubt the nation's international alliances, a requirement that the ultra-conservative party has indicated it will satisfy by proposing non-partisan experts.