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Andrej Babiš, the self-styled billionaire that secured victory in the recent parliamentary vote, has declined to offload his extensive corporate assets, while insisting he will resolve a ethical dilemma that could prevent him from assuming the position of prime minister.

Position on Corporate Empire

Babiš, whose ANO party came first in the autumn vote but did not secure a parliamentary majority, declared in a online statement that he will not sell his Agrofert conglomerate, which is active in farming, food processing, and chemical industries.

“I have consistently said I will never sell Agrofert. I have repeatedly stated I will resolve the conflict of interest in compliance with national and European laws,” the billionaire commented. “This is different from selling a pastry in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will eliminate ethical conflicts stemming from his business activities before assuming the role of prime minister.

The Czech constitution “clearly mandates the president to consider the possible emergence of a ethical issue and the ways to address it” when selecting cabinet members, Pavel's office noted.

The president “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the announcement added, noting that Pavel was prepared to designate Babiš as premier “without delay” once the issue was settled.

Business Operations and Legal Concerns

Babiš's several hundred firms, mostly under the Agrofert group, operate in the nation and other regional states, receiving substantial funds in domestic and European agricultural and other subsidies, as well as public contracts.

Under Czech law, cabinet members are barred from obtaining state support or agreements. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse public contracts, or stay out of government.

Past Term and Current Intentions

Babiš said he would “abide by the laws” if selected as prime minister, but did not want to explain how in beforehand because the matter was “an highly personal and private affair for me, and journalists will invariably criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over potential conflicts of interest. He placed his assets into fiduciary arrangements, while keeping some influence over them.

A court and the European Commission both ruled that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but declined to reveal details.

Governing Agreement and International Consequences

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to strengthen the populist movement in the region and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme include a statement on the official stance on the conflict in Ukraine, with a pledge to fulfilling Nato obligations.

The head of state has previously said he would not approve any cabinet candidates who might question the Czech Republic’s international alliances, a requirement that the far-right SPD has indicated it will meet by proposing independent technocrats.