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Andrej Babiš, the self-proclaimed billionaire that won the recent Czech election, has declined to sell his extensive 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 ANO party emerged victorious in the October vote but did not secure a parliamentary majority, declared in a online statement that he will not sell his Agrofert group, which operates in farming, food production, and chemical industries.

“I have consistently said I will never sell Agrofert. I have repeatedly 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 bakery.”

President's Demand

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove conflicts of interest stemming from his business activities before being appointed prime minister.

The national charter “explicitly requires the president to consider the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, the presidential administration explained.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement said, noting that Pavel was prepared to designate Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert group, function in the Czech Republic and other central European countries, benefiting from millions of euros in national and EU agricultural and other grants, as well as government deals.

Under Czech law, cabinet members are barred from obtaining public aid or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or not enter public office.

Previous Tenure and Present Plans

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

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš confirmed last month that he was once more the sole owner of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but refused to reveal details.

Governing Deal and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if approved, is expected to strengthen the populist bloc in central and eastern Europe and could challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for international relations, also demanded that the government agenda add a statement on the government’s position on the conflict in Ukraine, including a pledge to meeting alliance duties.

The president has earlier stated he would not approve any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has indicated it will satisfy by proposing independent technocrats.