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Andrej Babiš, the self-proclaimed billionaire who won the recent parliamentary vote, has declined to sell his vast business interests, while insisting he will address a ethical dilemma that could block him from taking the role of prime minister.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the October election but lacked a majority in parliament, stated in a online statement that he will not sell his Agrofert conglomerate, which is active in farming, food processing, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have consistently said I will address the ethical issue in accordance with national and EU regulations,” Babiš commented. “This is different from selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will eliminate conflicts of interest arising from his corporate dealings before being appointed prime minister.

The Czech constitution “clearly mandates the president to take into account the potential occurrence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the statement added, stating that Pavel was ready to designate Babiš as premier “immediately” once the matter was settled.

Business Operations and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the Czech Republic and other central European countries, benefiting from substantial funds in national and EU farming and other grants, as well as public contracts.

Under national legislation, government ministers are barred from obtaining public aid or agreements. The ethics organization Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, decline government deals, or stay out of government.

Past Term and Current Plans

Babiš affirmed he would “follow the regulations” if selected as premier, but declined to detail how in advance because the issue was “an extremely sensitive and private affair for me, and journalists will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but refused to disclose specifics.

Coalition Deal and International Consequences

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the far-right, pro-Russian 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 incoming administration, if confirmed, is expected to bolster the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme add a statement on the official stance on the conflict 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 nation's international alliances, a requirement that the far-right SPD has said it will satisfy by nominating non-partisan experts.