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Andrej Babiš, the self-proclaimed billionaire that secured victory in the recent parliamentary vote, has refused to sell his extensive corporate assets, while insisting he will resolve a ethical dilemma that might prevent him from assuming the position of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but lacked a parliamentary majority, declared in a online statement that he will not sell his Agrofert group, which is active in agriculture, food processing, and chemicals.

“I have consistently said I will not sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with national and European laws,” the billionaire commented. “This is different from selling a roll in a bakery.”

President's Demand

The Czech president, Petr Pavel, announced that the elderly political figure must clarify openly how he will remove ethical conflicts arising from his corporate dealings before assuming the role of premier.

The national charter “explicitly requires the president to consider the potential occurrence of a conflict of interest and the ways to address it” when selecting government ministers, Pavel's office explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was prepared to designate Babiš as premier “without delay” once the matter was resolved.

Business Operations and Legal Concerns

Babiš's several hundred firms, mostly under the Agrofert group, function in the Czech Republic and other regional countries, receiving millions of euros in domestic and European agricultural and other grants, as well as government deals.

Under national legislation, cabinet members cannot obtaining state support or agreements. The ethics watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, decline public contracts, or not enter public office.

Previous Term and Present Intentions

Babiš said he would “abide by the laws” if selected as premier, but did not want to explain how in beforehand because the issue was “an extremely sensitive and personal matter for me, and journalists will always criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over possible ethical issues. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

A court and the European Commission both determined that this was insufficient. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but refused to disclose specifics.

Coalition Deal and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to bolster the populist movement in the region and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, including a commitment to fulfilling alliance duties.

The president has previously said he would not approve any cabinet candidates who might doubt the nation's international alliances, a condition that the ultra-conservative party has indicated it will satisfy by nominating independent technocrats.