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Andrej Babiš, the self-styled billionaire who secured victory in last month's parliamentary vote, has declined to offload his vast corporate assets, while insisting he will resolve a ethical dilemma that could prevent him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October vote but lacked a parliamentary majority, declared 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 said I will never sell Agrofert. I have repeatedly said I will resolve the conflict of interest in accordance with Czech and European laws,” the billionaire remarked. “This is not like selling a pastry in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts arising from his corporate dealings before being appointed prime minister.

The national charter “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, stating that Pavel was ready to appoint Babiš as prime minister “immediately” once the issue was settled.

Corporate Activities and Legal Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, function in the Czech Republic and other regional countries, receiving millions of euros in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, cabinet members cannot receiving public aid or contracts. The anti-corruption organization Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, decline public contracts, or stay out of public office.

Previous Tenure and Current Intentions

Babiš said he would “abide by the laws” if selected as prime minister, but did not want to detail how in advance because the issue was “an highly personal and private affair for me, and journalists will invariably question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over potential conflicts of interest. He temporarily moved his holdings into trust funds, while keeping some influence over them.

A court and the European Commission both ruled that this did not suffice. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but declined to reveal specifics.

Governing Agreement and International Implications

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated 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 bloc in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the government agenda add a declaration on the government’s position on the conflict in Ukraine, with a pledge to fulfilling Nato obligations.

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