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Andrej Babiš, the self-styled billionaire who secured victory in last month's Czech election, has refused to offload his vast corporate assets, while asserting he will address a ethical dilemma that might prevent him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the October vote but did not secure a majority in parliament, stated in a online statement that he will not sell his Agrofert conglomerate, which is active in farming, food production, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with national and EU regulations,” the billionaire commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will eliminate conflicts of interest stemming from his business activities before assuming the role of premier.

The Czech constitution “clearly mandates the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, Pavel's office noted.

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

Corporate Activities and Legal Issues

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

Under national legislation, government ministers are barred from obtaining state support or agreements. The ethics watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, decline public contracts, or stay out of public office.

Past Term and Present Plans

Babiš said he would “follow the regulations” if appointed as premier, but did not want to detail how in advance because the issue was “an extremely sensitive and personal matter for me, and the media will always question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over possible ethical issues. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but refused to reveal specifics.

Coalition Agreement and International Implications

The wealthy politician has signed a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if confirmed, is likely to strengthen the populist bloc in central and eastern Europe and could strain western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

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

The head of state has earlier stated he would not endorse any cabinet candidates who might question the nation's international alliances, a condition that the far-right SPD has indicated it will meet by nominating independent technocrats.