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Andrej Babiš, the self-styled billionaire that secured victory in the recent Czech election, has declined to offload his extensive business interests, while insisting he will address a ethical dilemma that could prevent him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose political movement came first in the autumn election but lacked a majority in parliament, stated in a social media post that he would not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemicals.

“I have consistently stated I will not sell Agrofert. I have repeatedly stated I will resolve the conflict of interest in compliance with Czech and European laws,” the billionaire commented. “This is not like selling a roll in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove conflicts of interest arising from his business activities before being appointed premier.

The Czech constitution “clearly mandates the president to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was prepared to appoint Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Legal Concerns

Babiš's several hundred companies, mostly under the Agrofert group, operate in the Czech Republic and other regional states, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members cannot obtaining public aid or contracts. The ethics organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, decline public contracts, or stay out of public office.

Previous Term and Current Plans

Babiš said he would “follow the regulations” if selected as premier, but declined to detail how in advance because the issue was “an highly personal and personal matter for me, and journalists will always criticise me regardless”.

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

A court and the EU executive both determined that this was insufficient. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but declined to disclose specifics.

Governing Deal and International Implications

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is expected to strengthen the populist bloc in the region and could challenge backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the government agenda add a statement on the government’s position on the conflict in Ukraine, with a commitment to meeting Nato obligations.

The president has previously stated he would not approve any ministerial nominees who might doubt the Czech Republic’s international alliances, a requirement that the far-right SPD has said it will satisfy by nominating independent technocrats.