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Andrej Babiš, the self-proclaimed billionaire who secured victory in last month's parliamentary vote, has declined to sell his vast corporate assets, while insisting he will resolve a ethical dilemma that could block him from assuming the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party came first in the October vote but lacked a majority in parliament, stated in a social media post that he will not divest his Agrofert conglomerate, which is active in farming, food production, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have consistently said I will address the conflict of interest in accordance with national and European laws,” the billionaire commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will eliminate ethical conflicts stemming from his corporate dealings before assuming the role of premier.

The national charter “clearly mandates the head of state to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, the presidential administration explained.

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

Corporate Activities and Legal Issues

Babiš's several hundred companies, mostly under the Agrofert umbrella, function in the Czech Republic and other regional states, receiving substantial funds in domestic and European farming and other grants, as well as government deals.

Under national legislation, government ministers are barred from receiving state support or contracts. The anti-corruption organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, refuse government deals, or not enter government.

Past Term and Current Intentions

Babiš affirmed he would “follow the laws” if selected as premier, but did not want to explain how in beforehand because the issue was “an highly personal and personal matter for me, and journalists will invariably question me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over potential ethical issues. He temporarily moved his holdings into trust funds, while keeping some influence over them.

A court and the European Commission both ruled that this was insufficient. Babiš confirmed last month that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but refused to disclose specifics.

Governing Agreement and International Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if confirmed, is likely to strengthen the populist movement in the region and could challenge western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state has a role for international relations, also demanded that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The president has previously said he would not approve any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will satisfy by nominating independent technocrats.