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Andrej Babiš, the self-proclaimed billionaire that won last month's Czech election, has refused to offload his extensive corporate assets, while insisting he will address a ethical dilemma that could block him from assuming the role of head of government.

Stance on Business Holdings

Babiš, whose political movement came first in the autumn election but did not secure a parliamentary majority, stated in a online statement that he would not sell his Agrofert group, which operates in agriculture, food processing, and chemicals.

“I have repeatedly said I will not sell Agrofert. I have repeatedly said I will address the conflict of interest in accordance with Czech and EU regulations,” the billionaire commented. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the elderly political figure must clarify openly how he will remove ethical conflicts stemming from his business activities before being appointed prime minister.

The national charter “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement said, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was resolved.

Corporate Activities and Legal Issues

Babiš's several hundred companies, primarily under the Agrofert umbrella, operate in the Czech Republic and other regional states, benefiting from substantial funds in domestic and European farming and other grants, as well as public contracts.

Under Czech law, government ministers cannot obtaining public aid or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, decline government deals, or not enter public office.

Past Term and Present Intentions

Babiš affirmed he would “follow the laws” if appointed as premier, but did not want to explain how in beforehand because the issue was “an highly personal and personal matter for me, and journalists will invariably question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

A court and the European Commission both determined that this was insufficient. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to reveal specifics.

Coalition Deal and International Consequences

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for 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 bloc in central and eastern Europe and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme add a statement on the official stance on Russia’s war in Ukraine, with a commitment to meeting alliance duties.

The president has earlier said he would not endorse any cabinet candidates who might question the nation's international alliances, a condition that the far-right SPD has said it will satisfy by nominating non-partisan experts.