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Andrej Babiš, the self-styled billionaire who won the recent Czech election, has refused to sell his extensive business interests, while asserting he will resolve a ethical dilemma that might block him from assuming the role of head of government.

Position on Business Holdings

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

“I have consistently said I will never sell Agrofert. I have repeatedly said I will resolve the conflict of interest in compliance with national and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will eliminate conflicts of interest stemming from his business activities before being appointed prime minister.

The national charter “clearly mandates the president to consider the possible emergence of a ethical issue and the ways to address it” when appointing government ministers, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the announcement said, noting that Pavel was ready to designate Babiš as prime minister “immediately” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert umbrella, function in the nation and other central European countries, receiving millions of euros in domestic and European agricultural and other subsidies, as well as public contracts.

Under Czech law, government ministers are barred from receiving public aid or contracts. The anti-corruption watchdog Transparency International has indicated 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 “follow the regulations” if appointed as prime minister, but declined to detail how in beforehand because the matter was “an highly personal and personal matter for me, and the media will invariably question me regardless”.

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 holdings into fiduciary arrangements, while retaining certain control over them.

A court 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 “taking steps” to avoid a conflict of interest, but declined to reveal details.

Governing Deal and Foreign Policy Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote 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 western support for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for international relations, also demanded that the coalition’s programme add a declaration on the government’s position on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

The president has previously said he would not endorse any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has indicated it will satisfy by proposing non-partisan experts.