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Andrej Babiš, the self-proclaimed billionaire who secured victory in the recent parliamentary vote, has declined to sell his extensive business interests, while insisting he will address a ethical dilemma that could block him from taking the position of prime minister.

Position on Corporate Empire

Babiš, whose ANO party came first in the October vote but lacked a majority in parliament, declared in a social media post that he would not divest his Agrofert group, which is active in agriculture, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in compliance with Czech and European laws,” Babiš remarked. “This is not like selling a pastry in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will remove conflicts of interest arising from his business activities before assuming the role of premier.

The Czech constitution “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, Pavel's office explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was prepared to appoint Babiš as prime minister “without delay” once the matter was resolved.

Business Operations and Legal Issues

Babiš's several hundred companies, primarily under the Agrofert group, function in the Czech Republic and other regional countries, receiving millions of euros in national and EU agricultural and other subsidies, as well as public contracts.

Under Czech law, cabinet members cannot obtaining state support or agreements. The ethics organization Transparency International has stated that to avoid a ethical breach, Babiš must either divest, refuse public contracts, or stay out of government.

Past Term and Current Plans

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

During his first term as premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over possible conflicts of interest. He temporarily moved his holdings into trust funds, while retaining certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but declined to reveal details.

Governing Deal and International Implications

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if approved, is likely to bolster the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – although 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 foreign policy, also requested that the coalition’s programme add a statement on the government’s position on Russia’s war in Ukraine, including a pledge to fulfilling Nato obligations.

The head of state has earlier stated he would not approve any cabinet candidates who might doubt the Czech Republic’s international alliances, a requirement that the far-right SPD has said it will meet by nominating independent technocrats.