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Andrej Babiš, the self-styled billionaire who won the recent Czech election, has refused to offload his vast corporate assets, while asserting he will address a ethical dilemma that might prevent him from taking the position of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the autumn vote but did not secure a majority in parliament, stated in a online statement that he will not sell his Agrofert group, which operates in agriculture, food production, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly said I will resolve the conflict of interest in accordance with national and EU regulations,” Babiš remarked. “This is different from selling a roll in a bakery.”

President's Demand

The Czech president, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will eliminate ethical conflicts stemming from his corporate dealings before being appointed prime minister.

The Czech constitution “clearly mandates the head of state to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the announcement added, noting that Pavel was ready to appoint Babiš as premier “immediately” once the issue was resolved.

Business Operations and Legal Issues

Babiš's several hundred firms, primarily under the Agrofert group, operate in the Czech Republic and other regional countries, benefiting from substantial funds in national and EU farming and other grants, as well as government deals.

Under national legislation, government ministers cannot receiving state support or agreements. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse government deals, or stay out of public office.

Past Tenure and Current Intentions

Babiš affirmed he would “follow the laws” if appointed as prime minister, but declined to detail how in advance because the issue was “an extremely sensitive and private affair for me, and journalists will invariably question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while keeping certain control over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to disclose details.

Governing Agreement and International Implications

The billionaire populist has signed a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

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

Pavel, who as president has a role for international relations, also demanded that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, including a commitment to meeting Nato obligations.

The head of state has earlier stated he would not endorse any ministerial nominees who might question the nation's international alliances, a condition that the ultra-conservative party has said it will satisfy by nominating independent technocrats.