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Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's parliamentary vote, has refused to sell his vast corporate assets, while insisting he will address a ethical dilemma that might prevent him from taking the role of head of government.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the October election but did not secure a parliamentary majority, declared in a online statement that he will not divest his Agrofert conglomerate, which is active in farming, food production, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with national and European laws,” the billionaire remarked. “This is different from selling a roll in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will remove conflicts of interest arising from his business activities before being appointed prime minister.

The Czech constitution “clearly mandates the head of state to take into account the possible emergence of a conflict of interest and the ways to address it” when appointing government ministers, the presidential administration explained.

The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, noting that Pavel was prepared to designate Babiš as prime minister “immediately” once the matter was resolved.

Business Operations and Regulatory Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European states, benefiting from substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, cabinet members cannot receiving public aid or contracts. The ethics organization Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, decline government deals, or stay out of government.

Previous Tenure and Present Plans

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

During his first term as prime minister, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over possible ethical issues. He placed his assets into fiduciary arrangements, while retaining some influence over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but refused to reveal details.

Governing Agreement and Foreign Policy Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is likely to strengthen the populist bloc in central and eastern Europe and could strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for international relations, also demanded that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The president has previously stated he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has indicated it will satisfy by proposing independent technocrats.