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Andrej Babiš, the self-proclaimed billionaire who won last month's Czech election, has declined to sell his vast business interests, while asserting he will address a ethical dilemma that could prevent him from taking the role of prime minister.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but lacked a parliamentary majority, declared in a social media post that he will not divest his Agrofert conglomerate, which is active in farming, food production, and chemicals.

“I have repeatedly said I will not sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with national and European laws,” Babiš remarked. “This is not like selling a roll in a bakery.”

President's Demand

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

The Czech constitution “clearly mandates the head of state to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, Pavel's office explained.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement said, stating that Pavel was prepared to designate Babiš as premier “immediately” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional states, receiving millions of euros in domestic and European farming and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot obtaining state support or contracts. The ethics organization Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or stay out of public office.

Previous Tenure and Present Plans

Babiš said he would “abide by the regulations” if appointed 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 first term as prime minister, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential conflicts of interest. He placed his holdings into trust funds, while retaining some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but refused to disclose details.

Governing Deal and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if confirmed, is likely to strengthen the populist movement in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for international relations, also requested that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, with a pledge to fulfilling Nato obligations.

The president has previously stated he would not approve any cabinet candidates who might doubt the nation's international alliances, a condition that the far-right SPD has indicated it will meet by nominating non-partisan experts.