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Andrej Babiš, the self-proclaimed billionaire who secured victory in last month's Czech election, has declined to sell his extensive business interests, while insisting he will address a ethical dilemma that could prevent him from assuming the position of prime minister.

Position on Corporate Empire

Babiš, whose political movement came first in the autumn election but did not secure a parliamentary majority, stated in a online statement that he will not sell his Agrofert conglomerate, which is active in agriculture, food processing, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have repeatedly stated I will resolve the ethical issue in compliance with national and European laws,” Babiš commented. “This is different from selling a pastry in a bakery.”

President's Demand

The head of state, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will eliminate ethical conflicts arising from his corporate dealings before assuming the role of prime minister.

The Czech constitution “clearly mandates the president to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, Pavel's office noted.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the statement added, stating that Pavel was ready to appoint Babiš as prime minister “immediately” once the matter was settled.

Corporate Activities and Regulatory Concerns

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

Under national legislation, cabinet members are barred from receiving state support or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline government deals, or not enter government.

Previous Term and Present Plans

Babiš said he would “follow the regulations” if appointed as premier, but did not want to explain how in advance because the matter was “an highly personal and personal matter for me, and the media will always question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over potential conflicts of interest. He placed his assets into fiduciary arrangements, while retaining some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated last month that he was again the sole owner of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but refused to disclose specifics.

Coalition Deal and International Consequences

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The new government, if approved, is likely to strengthen the populist movement in the region and could strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for international relations, also demanded that the coalition’s programme add a statement on the official stance on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

The president has earlier said he would not approve any cabinet candidates who might question the Czech Republic’s international alliances, a requirement that the far-right SPD has indicated it will satisfy by nominating non-partisan experts.