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Andrej Babiš, the self-styled billionaire that secured victory in last month's Czech election, has refused to sell his extensive corporate assets, while insisting he will address a ethical dilemma that could prevent him from assuming the position of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn vote but did not secure a parliamentary majority, stated in a social media post that he will not divest his Agrofert conglomerate, which is active in farming, food production, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with national and EU regulations,” the billionaire commented. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will remove ethical conflicts stemming from his business activities before assuming the role of prime minister.

The Czech constitution “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting cabinet members, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the statement said, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert group, operate in the Czech Republic and other regional countries, receiving substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, cabinet members are barred from obtaining state support or contracts. The anti-corruption organization Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, decline public contracts, or stay out of government.

Previous Tenure and Current Intentions

Babiš affirmed he would “abide by the laws” if appointed as prime minister, but declined to explain how in beforehand because the matter was “an extremely sensitive and private affair for me, and journalists will invariably question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential conflicts of interest. He temporarily moved his holdings into trust funds, while retaining some influence over them.

A court and the European Commission both determined that this did not suffice. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but refused to disclose details.

Coalition Deal and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement 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 primarily campaigned against the EU’s Green Deal.

The new government, if confirmed, is likely to bolster the populist movement in the region and could strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme include a declaration on the official stance on Russia’s war in Ukraine, including a pledge to fulfilling Nato obligations.

The head of state has earlier stated he would not approve any cabinet candidates who might doubt the nation's international alliances, a requirement that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.