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

Stance on Business Holdings

Babiš, whose ANO party came first in the October vote but did not secure a parliamentary majority, declared in a online statement that he will not divest his Agrofert group, which operates in agriculture, food production, and chemicals.

“I have consistently stated I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in compliance with national and European laws,” Babiš commented. “This is different from selling a pastry in a bakery.”

President's Requirement

The head of state, Petr Pavel, announced that the elderly political figure must clarify openly how he will remove conflicts of interest arising from his corporate dealings before being appointed premier.

The national charter “explicitly requires the head of state to consider the potential occurrence of a conflict of interest and the ways to address it” when appointing government ministers, Pavel's office explained.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement said, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was resolved.

Business Operations and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert umbrella, function in the Czech Republic and other regional states, receiving substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, government ministers are barred from receiving state support or agreements. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse public contracts, or not enter government.

Past Term and Present Intentions

Babiš affirmed he would “follow the regulations” if selected as prime minister, but declined to explain how in beforehand because the matter was “an highly personal and private affair for me, and the media will invariably question me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping some influence over them.

A judicial body and the European Commission both ruled that this was insufficient. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but declined to reveal specifics.

Coalition Deal 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 referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if confirmed, is expected to bolster the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for international relations, also demanded that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, including a commitment to fulfilling Nato obligations.

The president has previously stated he would not endorse any ministerial nominees who might question the Czech Republic’s international alliances, a requirement that the far-right SPD has indicated it will meet by nominating independent technocrats.