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Andrej Babiš, the self-proclaimed billionaire who won the recent parliamentary vote, has declined to sell his extensive corporate assets, while asserting he will resolve a ethical dilemma that could prevent him from taking the role of head of government.

Stance on Business Holdings

Babiš, whose ANO party came first in the autumn election but did not secure a parliamentary majority, declared in a online statement that he will not divest his Agrofert group, which operates in farming, food processing, and chemical industries.

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

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 stemming from his business activities before being appointed prime minister.

The national charter “explicitly requires the president to consider the possible emergence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was ready to designate Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Legal Concerns

Babiš's numerous firms, primarily under the Agrofert group, function in the Czech Republic and other central European states, benefiting from substantial funds in national and EU farming and other grants, as well as government deals.

Under Czech law, government ministers are barred from receiving public aid or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or stay out of government.

Previous Term and Present Intentions

Babiš said he would “follow the regulations” if selected as premier, but did not want to explain how in beforehand because the matter was “an extremely sensitive and personal matter for me, and the media will always question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over possible ethical issues. He placed his holdings into fiduciary arrangements, while keeping certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but refused to disclose specifics.

Governing Deal and International Implications

The wealthy politician has signed a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The incoming administration, if approved, is likely to strengthen the populist bloc in central and eastern Europe and could challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for foreign policy, also demanded that the coalition’s programme add a statement on the government’s position on the conflict in Ukraine, including a pledge to fulfilling Nato obligations.

The president has previously stated he would not endorse any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has indicated it will satisfy by proposing non-partisan experts.