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Andrej Babiš, the self-proclaimed billionaire who won the recent parliamentary vote, has refused to sell his vast corporate assets, while insisting he will resolve a ethical dilemma that could block him from taking the position of head of government.

Position on Business Holdings

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

“I have repeatedly said I will not sell Agrofert. I have consistently said I will resolve the ethical issue in compliance with national and EU regulations,” Babiš commented. “This is different from selling a roll in a bakery.”

President's Demand

The Czech president, Petr Pavel, stated 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 prime minister.

The national charter “explicitly requires the president to take into account the possible emergence of a ethical issue and the ways to address it” when selecting cabinet members, Pavel's office explained.

The president “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to designate Babiš as premier “without delay” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert umbrella, function in the Czech Republic and other central European states, receiving millions of euros in national and EU agricultural and other grants, as well as public contracts.

Under national legislation, government ministers cannot receiving state support or contracts. The anti-corruption organization Transparency International has stated that to avoid a ethical breach, Babiš must either divest, refuse government deals, or not enter government.

Past Term and Present Intentions

Babiš affirmed he would “follow the regulations” if appointed as prime minister, but declined to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and the media will invariably criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over potential conflicts of interest. He placed his holdings into trust funds, while retaining certain control 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 maintained he was “implementing measures” to avoid a conflict of interest, but refused to reveal details.

Governing Deal and International Implications

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if confirmed, is expected to bolster the populist bloc in central and eastern Europe and might challenge western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also requested that the government agenda include a statement on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has earlier said he would not endorse any cabinet candidates who might question the Czech Republic’s international alliances, a requirement that the ultra-conservative party has indicated it will satisfy by nominating non-partisan experts.