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Andrej Babiš, the self-proclaimed billionaire who secured victory in the recent Czech election, has refused to sell his extensive business interests, while asserting he will address a ethical dilemma that might block him from assuming the position of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but lacked a majority in parliament, declared in a online statement that he would not sell his Agrofert conglomerate, which operates in farming, food processing, and chemicals.

“I have consistently stated I will never sell Agrofert. I have consistently stated I will resolve the ethical issue in accordance with national and European laws,” Babiš commented. “This is different from selling a roll in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, stated that the elderly political figure must clarify openly how he will eliminate conflicts of interest stemming from his business activities before assuming the role of premier.

The Czech constitution “explicitly requires the head of state to take into account the potential occurrence of a conflict of interest and the ways to address it” when appointing government ministers, the presidential administration explained.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement added, noting that Pavel was prepared to designate Babiš as prime minister “without delay” once the issue was settled.

Business Operations and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, operate in the nation and other central European states, receiving substantial funds in domestic and European farming and other grants, as well as public contracts.

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse public contracts, or stay out of public office.

Past Tenure and Present Intentions

Babiš affirmed he would “abide by the regulations” if selected as premier, but did not want to detail how in advance because the matter was “an extremely sensitive and personal matter for me, and the media will always criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over potential ethical issues. He temporarily moved his holdings into trust funds, while retaining certain control over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to reveal specifics.

Coalition Agreement and Foreign Policy Implications

The wealthy politician has signed a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to strengthen the populist bloc in the region and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

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

The head of state has earlier stated he would not endorse any cabinet candidates who might doubt the Czech Republic’s international alliances, a requirement that the ultra-conservative party has said it will satisfy by proposing independent technocrats.