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Andrej Babiš, the self-styled billionaire that won last month's parliamentary vote, 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.

Position on Corporate Empire

Babiš, whose ANO party came first in the October election but lacked a parliamentary majority, declared in a online statement that he will not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemicals.

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

Head of State's Demand

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

The Czech constitution “explicitly requires the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when selecting cabinet members, the presidential administration explained.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was resolved.

Business Operations and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional states, receiving substantial funds in national and EU farming and other subsidies, as well as public contracts.

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

Past Tenure and Current Intentions

Babiš said he would “follow the regulations” if appointed as prime minister, but declined to explain how in beforehand because the issue was “an highly personal and personal matter for me, and journalists will invariably criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping certain control over them.

A court and the European Commission both ruled that this did not suffice. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but refused to reveal details.

Coalition Agreement and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is expected to strengthen the populist bloc in the region and might strain western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for international relations, also demanded that the coalition’s programme add a statement on the government’s position on the conflict 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 question the Czech Republic’s international alliances, a requirement that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.