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Andrej Babiš, the self-styled billionaire that won the recent parliamentary vote, has declined to sell his extensive corporate assets, while asserting he will resolve a ethical dilemma that could block him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose political movement came first in the October vote but did not secure a parliamentary majority, stated in a social media post that he would not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“I have repeatedly stated I will not sell Agrofert. I have consistently stated I will address the conflict of interest in compliance with national and European laws,” Babiš commented. “This is different from selling a roll in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, stated that the elderly populist must publicly explain how he will remove ethical conflicts arising from his business activities before being appointed prime minister.

The national charter “explicitly requires the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, Pavel's office explained.

The president “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, stating that Pavel was prepared to appoint Babiš as premier “immediately” once the issue was resolved.

Business Operations and Legal Issues

Babiš's several hundred companies, mostly under the Agrofert umbrella, function in the Czech Republic and other regional states, benefiting from substantial funds in domestic and European farming and other grants, as well as government deals.

Under Czech law, government ministers cannot receiving state support or contracts. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, decline government deals, or stay out of government.

Previous Tenure and Present Plans

Babiš affirmed he would “abide by the laws” if appointed as premier, but declined to explain how in advance because the issue was “an extremely sensitive and private affair for me, and the media will invariably question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over possible conflicts of interest. He temporarily moved his holdings into trust funds, while keeping some influence over them.

A court and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to reveal details.

Governing Agreement and Foreign Policy Consequences

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if approved, is expected to strengthen the populist bloc in central and eastern Europe and could challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme include a statement on the government’s position on Russia’s war in Ukraine, with a pledge to meeting alliance duties.

The head of state has previously said he would not endorse any ministerial nominees who might question the Czech Republic’s international alliances, a condition that the ultra-conservative party has indicated it will satisfy by nominating independent technocrats.