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Andrej Babiš, the self-proclaimed billionaire who won the recent Czech election, has refused to sell his vast corporate assets, while asserting he will address a ethical dilemma that could block him from assuming the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party came first in the October vote 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 stated I will never sell Agrofert. I have consistently stated I will resolve the ethical issue in compliance with Czech and European laws,” Babiš remarked. “This is different from selling a pastry in a bakery.”

President's Requirement

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

The national charter “clearly mandates the head of state to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement added, noting that Pavel was prepared to appoint Babiš as prime minister “immediately” once the matter was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert group, operate in the Czech Republic and other regional countries, benefiting from millions of euros in domestic and European farming and other grants, as well as government deals.

Under national legislation, cabinet members are barred from obtaining public aid or contracts. The ethics organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline public contracts, or stay out of public office.

Past Term and Present Intentions

Babiš affirmed he would “follow the laws” if appointed as premier, but declined 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 premier, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over possible conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš stated recently that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but declined to disclose specifics.

Governing Deal and Foreign Policy Implications

The wealthy politician has signed a governing pact 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 incoming administration, if approved, is expected to strengthen the populist bloc in the region and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for international relations, also demanded that the coalition’s programme include a statement on the official stance on Russia’s war in Ukraine, with a commitment to fulfilling alliance duties.

The president has previously stated he would not endorse any cabinet candidates who might doubt the nation's international alliances, a condition that the far-right SPD has said it will meet by proposing non-partisan experts.