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Andrej Babiš, the self-styled billionaire who secured victory in last month's parliamentary vote, has declined to offload his vast corporate assets, while insisting he will resolve a ethical dilemma that could block him from assuming the position of head of government.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the October vote but did not secure a majority in parliament, declared in a online statement that he would not divest his Agrofert group, which operates in agriculture, food production, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with Czech and EU regulations,” Babiš remarked. “This is not like selling a roll in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will remove ethical conflicts arising from his corporate dealings before being appointed prime minister.

The national charter “clearly mandates the head of state to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, the presidential administration explained.

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

Business Operations and Regulatory Concerns

Babiš's several hundred firms, primarily under the Agrofert group, operate in the nation and other regional states, receiving substantial funds in national and EU farming and other grants, as well as government deals.

Under national legislation, cabinet members are barred from receiving public aid or agreements. The anti-corruption watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, decline public contracts, or stay out of government.

Past Term and Current Plans

Babiš affirmed he would “abide by the regulations” if appointed as prime minister, but declined to explain how in advance because the matter was “an highly personal and private affair for me, and journalists will always criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several court cases and an European inquiry over potential conflicts of interest. He placed his assets into fiduciary arrangements, while retaining some influence over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to reveal details.

Coalition Agreement and International Consequences

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if confirmed, is expected to bolster the populist movement in the region and might strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for foreign policy, also demanded that the coalition’s programme add a statement on the official stance on the conflict in Ukraine, with a commitment to meeting alliance duties.

The head of state has earlier stated he would not approve any ministerial nominees who might doubt the Czech Republic’s international alliances, a requirement that the ultra-conservative party has said it will meet by nominating independent technocrats.