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Andrej Babiš, the self-proclaimed billionaire that secured victory in the recent Czech election, has declined to offload his vast business interests, while insisting he will resolve a ethical dilemma that could block him from assuming the position of prime minister.

Stance on Corporate Empire

Babiš, whose political movement came first in the October election but lacked a parliamentary majority, stated in a online statement that he will not divest his Agrofert group, which is active in farming, food processing, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have consistently said I will address the conflict of interest in accordance with Czech and EU regulations,” the billionaire commented. “This is different from selling a roll in a bakery.”

President's Demand

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

The national charter “explicitly requires the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, stating that Pavel was prepared to designate Babiš as premier “without delay” once the matter was resolved.

Business Operations and Legal Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the Czech Republic and other regional countries, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers cannot obtaining state support or agreements. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline public contracts, or not enter government.

Previous Tenure and Current Plans

Babiš said he would “abide by the regulations” if appointed as premier, but did not want to explain how in advance because the matter was “an extremely sensitive and private affair for me, and journalists will invariably criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over possible conflicts of interest. He temporarily moved his assets into trust funds, while retaining some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated recently that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but declined to disclose specifics.

Coalition Deal and Foreign Policy Implications

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if confirmed, is expected to strengthen the populist bloc in the region and might challenge backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

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

The president has earlier stated he would not approve any cabinet candidates who might doubt the nation's EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by proposing independent technocrats.