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Andrej Babiš, the self-styled billionaire that won the recent parliamentary vote, has refused to sell his vast business interests, while asserting he will resolve a ethical dilemma that might block him from assuming the role of prime minister.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but lacked a parliamentary majority, declared in a online statement that he will not divest his Agrofert conglomerate, which is active in agriculture, food processing, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have repeatedly said I will resolve the conflict of interest in accordance with national and EU regulations,” the billionaire commented. “This is not like selling a pastry in a bakeshop.”

President's Demand

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will eliminate ethical conflicts stemming from his corporate dealings before assuming the role of prime minister.

The Czech constitution “clearly mandates the president to take into account the possible emergence of a conflict of interest and the ways to address it” when selecting government ministers, the presidential administration explained.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement said, stating that Pavel was prepared to appoint Babiš as prime minister “immediately” once the matter was settled.

Corporate Activities and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert umbrella, function in the Czech Republic and other central European countries, benefiting from millions of euros in domestic and European farming and other subsidies, as well as public contracts.

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

Previous Tenure and Current Intentions

Babiš said he would “abide by the laws” if selected as premier, but did not want to explain how in advance because the matter was “an highly personal and private affair for me, and the media will always question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible conflicts of interest. He placed his assets into trust funds, while retaining some influence over them.

A court and the European Commission both ruled that this did not suffice. Babiš confirmed last month that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to disclose specifics.

Coalition Deal and Foreign Policy Implications

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if confirmed, is expected to bolster the populist bloc in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme include a statement on the official stance on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

The head of state has earlier stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by nominating non-partisan experts.