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

Stance on Corporate Empire

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

“I have repeatedly stated I will not sell Agrofert. I have consistently said I will resolve the ethical issue in accordance with national and European laws,” the billionaire remarked. “This is not like selling a pastry in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, stated that the elderly populist must publicly explain how he will remove conflicts of interest arising from his business activities before being appointed premier.

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

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, stating that Pavel was ready to designate Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert umbrella, operate in the nation and other regional states, receiving millions of euros in national and EU farming and other subsidies, as well as government deals.

Under national legislation, government ministers cannot obtaining state support or agreements. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline public contracts, or not enter government.

Past Tenure and Current Intentions

Babiš said he would “abide by the laws” if selected as prime minister, but did not want to explain how in advance because the issue was “an extremely sensitive and private affair for me, and the media will always question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced several court cases and an European inquiry over potential conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but declined to reveal specifics.

Governing Agreement and Foreign Policy Implications

The wealthy politician has signed a governing pact with two rightwing fringe parties, 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 Green Deal.

The incoming administration, if approved, is expected to strengthen the populist bloc in the region and might challenge western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

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, including a commitment to meeting Nato obligations.

The president has previously said he would not approve any cabinet candidates who might question the Czech Republic’s international alliances, a condition that the far-right SPD has said it will satisfy by nominating non-partisan experts.