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Andrej Babiš, the self-proclaimed billionaire who secured victory in the recent parliamentary vote, has refused to sell his extensive business interests, while insisting he will resolve a ethical dilemma that might prevent him from taking the role of prime minister.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn vote but did not secure a parliamentary majority, declared in a social media post that he would not sell his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently said I will address the conflict of interest in compliance with Czech and EU regulations,” the billionaire commented. “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 ethical conflicts stemming from his corporate dealings before being appointed prime minister.

The Czech constitution “clearly mandates the president to consider the possible emergence of a ethical issue and the ways to address it” when selecting cabinet members, Pavel's office explained.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, noting that Pavel was prepared to designate Babiš as premier “immediately” once the matter was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, primarily under the Agrofert umbrella, function in the Czech Republic and other central European states, benefiting from substantial funds in national and EU agricultural and other grants, as well as government deals.

Under national legislation, cabinet members cannot obtaining public aid or agreements. The anti-corruption organization Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, refuse public contracts, or not enter public office.

Previous Term and Current Plans

Babiš said he would “abide by the regulations” if selected as prime minister, but did not want to detail how in advance because the matter was “an extremely sensitive and private affair for me, and journalists 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 ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.

A court and the European Commission both determined that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but declined to reveal details.

Governing Agreement and International Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The new government, if approved, is expected to strengthen the populist bloc in central and eastern Europe and might strain western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also demanded that the government agenda include a statement on the government’s position on Russia’s war in Ukraine, including a pledge to fulfilling alliance duties.

The head of state has previously said he would not approve any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by proposing non-partisan experts.