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Andrej Babiš, the self-proclaimed billionaire that won the recent parliamentary vote, has declined to sell his vast corporate assets, while asserting he will address a ethical dilemma that could prevent him from taking the position of head of government.

Position on Business Holdings

Babiš, whose political movement came first 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 agriculture, food production, and chemical industries.

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

President's Demand

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

The Czech constitution “clearly mandates the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the statement said, noting that Pavel was ready to appoint Babiš as premier “immediately” once the matter was resolved.

Business Operations and Legal Concerns

Babiš's numerous companies, primarily under the Agrofert umbrella, function in the Czech Republic and other central European countries, benefiting from substantial funds in domestic and European agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers are barred from obtaining state support or agreements. The anti-corruption watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, decline public contracts, or not enter public office.

Past Tenure and Current Plans

Babiš affirmed he would “follow the regulations” if appointed as prime minister, but did not want to explain how in beforehand because the matter was “an extremely sensitive and private affair for me, and journalists will always criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into trust funds, while keeping some influence over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to disclose details.

Governing Agreement and International Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if approved, is expected to strengthen the populist bloc in the region and could strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for foreign policy, also demanded that the government agenda include a statement on the government’s position on Russia’s war in Ukraine, including a commitment to fulfilling alliance duties.

The president has previously said he would not endorse any ministerial nominees who might doubt the nation's international alliances, a requirement that the far-right SPD has said it will satisfy by nominating non-partisan experts.