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Andrej Babiš, the self-proclaimed billionaire who secured victory in last month's parliamentary vote, has refused to sell his vast corporate assets, while asserting he will address a ethical dilemma that might prevent him from taking the role of head of government.

Position on Business Holdings

Babiš, whose political movement came first in the October election but lacked a majority in parliament, stated in a online statement that he would not divest his Agrofert group, which is active in agriculture, food processing, and chemicals.

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

Head of State's Demand

The Czech president, Petr Pavel, announced that the elderly political figure must clarify openly how he will remove conflicts of interest stemming from his business activities before assuming the role of premier.

The Czech constitution “clearly mandates the head of state to consider the potential occurrence of a conflict of interest and the ways to address it” when selecting cabinet members, the presidential administration noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, noting that Pavel was ready to appoint Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert group, function in the nation and other central European countries, receiving millions of euros in domestic and European farming and other subsidies, as well as public contracts.

Under Czech law, government ministers are barred from obtaining public aid or agreements. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or not enter public office.

Previous Tenure and Present Intentions

Babiš said he would “abide by the regulations” if appointed 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 invariably question me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an European inquiry over possible ethical issues. He placed his assets 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 again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to reveal details.

Coalition Agreement and International Consequences

The billionaire populist has signed a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if confirmed, is expected to bolster the populist bloc in the region and might strain western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for foreign policy, also requested that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, with a commitment to fulfilling Nato obligations.

The president has previously stated he would not endorse any cabinet candidates who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has said it will meet by nominating non-partisan experts.