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Andrej Babiš, the self-styled billionaire who won last month's parliamentary vote, has declined to offload his extensive corporate assets, while insisting he will address a ethical dilemma that could prevent him from taking the role of head of government.

Position on Corporate Empire

Babiš, whose political movement came first in the autumn vote but did not secure a majority in parliament, declared in a social media post that he will not divest his Agrofert group, which operates in agriculture, food production, and chemical industries.

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

President's Requirement

The head of state, Petr Pavel, stated that the elderly political figure must publicly explain how he will eliminate conflicts of interest arising from his corporate dealings before assuming the role of premier.

The Czech constitution “clearly mandates the president to consider the possible emergence of a conflict of interest and the ways to address it” when appointing cabinet members, the presidential administration explained.

The president “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the statement said, noting that Pavel was ready to designate Babiš as prime minister “without delay” once the matter was settled.

Business Operations and Legal Concerns

Babiš's numerous companies, primarily under the Agrofert umbrella, function in the nation and other regional countries, receiving substantial funds in domestic and European farming and other grants, as well as government deals.

Under Czech law, cabinet members 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 divest, refuse public contracts, or stay out of government.

Past Tenure and Current Plans

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

During his first term as premier, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over possible conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while keeping some influence over them.

A court and the European Commission both determined that this was insufficient. Babiš stated recently that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but refused to disclose details.

Coalition Deal and Foreign Policy Consequences

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian 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 incoming administration, if approved, is likely to bolster the populist bloc in central and eastern Europe and could challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for international relations, also demanded that the government agenda add a declaration on the official stance on the conflict in Ukraine, including a pledge to meeting Nato obligations.

The head of state has previously stated he would not endorse any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has said it will meet by nominating non-partisan experts.