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Andrej Babiš, the self-styled billionaire that secured victory in last month's parliamentary vote, has refused to sell his vast business interests, while insisting 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 October vote but lacked a majority in parliament, declared in a social media post that he will not sell his Agrofert group, which is active in farming, food processing, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly said I will resolve the conflict of interest in accordance with national and European laws,” the billionaire remarked. “This is different from selling a roll in a bakeshop.”

President's Requirement

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

The Czech constitution “clearly mandates the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when appointing government ministers, the presidential administration explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, stating that Pavel was ready to designate Babiš as premier “immediately” once the matter was settled.

Business Operations and Legal Issues

Babiš's numerous firms, mostly under the Agrofert group, operate in the nation and other regional countries, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as government deals.

Under national legislation, cabinet members are barred from receiving public aid or contracts. The anti-corruption organization Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, refuse government deals, or not enter government.

Past Tenure and Present Plans

Babiš said he would “follow the regulations” if selected as premier, but did not want to detail how in beforehand because the matter was “an extremely sensitive and personal matter for me, and the media will always question 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 placed his assets into fiduciary arrangements, while keeping some influence over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to disclose details.

Coalition Deal and International Consequences

The wealthy politician has signed a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if approved, is likely to strengthen the populist movement in central and eastern Europe and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the coalition’s programme add 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 question the nation's international alliances, a condition that the ultra-conservative party has said it will meet by proposing independent technocrats.