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Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's Czech election, has refused to offload his vast business interests, while asserting he will address a ethical dilemma that could block him from taking the position of prime minister.

Stance on Corporate Empire

Babiš, whose political movement came first in the October election but did not secure a parliamentary majority, stated in a social media post that he will not sell his Agrofert group, which operates in farming, food processing, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with national and EU regulations,” Babiš commented. “This is not like selling a roll in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove conflicts of interest stemming from his business activities before assuming the role of prime minister.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office noted.

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

Business Operations and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert umbrella, operate in the Czech Republic and other central European states, receiving millions of euros in domestic and European farming and other grants, as well as public contracts.

Under Czech law, government ministers are barred from obtaining state support or agreements. The ethics watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either sell, decline government deals, or not enter public office.

Previous Tenure and Present Intentions

Babiš affirmed he would “abide by the laws” if appointed as prime minister, but did not want to explain how in advance because the matter was “an extremely sensitive and personal matter for me, and the media will invariably question me anyway”.

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 placed his holdings into fiduciary arrangements, while keeping some influence over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš confirmed recently that he was again the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to disclose details.

Governing Agreement and International Consequences

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to bolster the populist movement in the region and might strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for international relations, also demanded that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, including a pledge to fulfilling Nato obligations.

The president has earlier said he would not endorse any cabinet candidates who might doubt the Czech Republic’s international alliances, a condition that the ultra-conservative party has indicated it will satisfy by nominating non-partisan experts.