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Andrej Babiš, the self-styled billionaire that secured victory in last month's parliamentary vote, has declined to offload his vast corporate assets, while asserting he will resolve a ethical dilemma that might block him from taking the position of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but did not secure a parliamentary majority, declared in a online statement that he will not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently stated I will address the conflict of interest in accordance with national and EU regulations,” the billionaire commented. “This is not like selling a pastry in a bakery.”

President's Requirement

The head of state, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will remove ethical conflicts arising from his business activities before assuming the role of premier.

The Czech constitution “clearly mandates the president to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration explained.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, noting that Pavel was ready to appoint Babiš as premier “immediately” once the issue was settled.

Business Operations and Legal Issues

Babiš's several hundred companies, primarily under the Agrofert umbrella, operate in the Czech Republic and other central European countries, benefiting from substantial funds in domestic and European farming and other grants, as well as public contracts.

Under Czech law, government ministers are barred from receiving public aid or contracts. The ethics organization Transparency International has stated that to avoid a ethical breach, Babiš must either divest, refuse public contracts, or not enter government.

Past Term and Present Intentions

Babiš affirmed he would “abide by the laws” if appointed as premier, but did not want to detail how in advance because the issue was “an highly personal and private affair for me, and journalists will always criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.

A court and the European Commission both determined that this did not suffice. Babiš stated last month that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but refused to reveal details.

Governing Agreement and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if approved, is likely to bolster the populist bloc in the region and might challenge western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme add a declaration on the official stance on the conflict in Ukraine, including a pledge to meeting alliance duties.

The president has earlier stated he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a requirement that the far-right SPD has said it will meet by proposing independent technocrats.