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Andrej Babiš, the self-styled billionaire that won the recent Czech election, has refused to sell his vast business interests, while asserting he will address a ethical dilemma that could prevent him from assuming the position of prime minister.

Position on Corporate Empire

Babiš, whose political movement came first in the autumn vote but did not secure a majority in parliament, stated in a online statement that he will not divest his Agrofert group, which is active in farming, food production, and chemicals.

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

President's Demand

The Czech president, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts arising from his business activities before being appointed prime minister.

The national charter “explicitly requires the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, Pavel's office explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was ready to appoint Babiš as premier “without delay” once the issue was resolved.

Business Operations and Regulatory Issues

Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the nation and other central European countries, receiving substantial funds in national and EU farming and other grants, as well as government deals.

Under Czech law, cabinet members are barred from obtaining public aid or agreements. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline government deals, or not enter government.

Past Term and Current Intentions

Babiš said he would “abide by the regulations” if selected as prime minister, but declined to detail how in advance because the issue was “an highly personal and personal matter for me, and journalists will invariably criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible ethical issues. He temporarily moved his assets into trust funds, while keeping certain control over them.

A judicial body and the EU executive 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 “taking steps” to avoid a conflict of interest, but declined to disclose details.

Coalition Agreement and International Implications

The billionaire populist has signed a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if approved, 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 leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for international relations, also requested that the government agenda include a statement on the government’s position on the conflict in Ukraine, with a commitment to fulfilling alliance duties.

The president has previously stated he would not endorse 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 proposing independent technocrats.