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Andrej Babiš, the self-styled billionaire who secured victory in last month's parliamentary vote, has declined to sell his extensive corporate assets, while insisting he will address a ethical dilemma that might prevent him from assuming the position of head of government.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn election but did not secure 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 stated I will never sell Agrofert. I have repeatedly said I will address the conflict of interest in accordance with national and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the elderly political figure must clarify openly how he will eliminate ethical conflicts arising from his corporate dealings before assuming the role of prime minister.

The Czech constitution “clearly mandates the president to take into account 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 precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, stating that Pavel was prepared to designate Babiš as premier “without delay” once the matter was resolved.

Business Operations and Legal Concerns

Babiš's several hundred firms, mostly under the Agrofert umbrella, function in the nation and other regional countries, receiving millions of euros in domestic and European agricultural and other grants, as well as government deals.

Under Czech law, cabinet members cannot obtaining state support or contracts. The anti-corruption watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either sell, decline government deals, or stay out of government.

Previous Term and Current Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but did not want to detail how in advance 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 placed his assets into fiduciary arrangements, while retaining certain control over them.

A court and the European Commission both determined that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but refused to disclose details.

Coalition Deal and International Consequences

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

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

Pavel, who as head of state shares responsibility for international relations, also requested that the coalition’s programme add a statement on the official stance on the conflict in Ukraine, with a commitment to meeting 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 condition that the ultra-conservative party has said it will meet by nominating independent technocrats.