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Andrej Babiš, the self-styled billionaire that secured victory in last month's parliamentary vote, has refused to offload his vast corporate assets, while asserting he will address a ethical dilemma that might prevent him from taking the role of head of government.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn vote but did not secure a majority in parliament, declared in a social media post that he would not sell his Agrofert group, which operates in farming, food processing, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently stated I will resolve the ethical issue in accordance with national and European laws,” the billionaire remarked. “This is different from selling a roll in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will eliminate conflicts of interest arising from his business activities 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 cabinet members, the presidential administration noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, stating that Pavel was prepared to designate Babiš as prime minister “immediately” once the issue was settled.

Business Operations and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert group, operate in the Czech Republic and other central European countries, receiving millions of euros in national and EU agricultural and other grants, as well as government deals.

Under Czech law, cabinet members are barred from receiving state support or contracts. The ethics organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, decline government deals, or not enter government.

Previous Tenure and Current Plans

Babiš said he would “abide by the laws” if appointed as prime minister, but declined to explain how in advance because the issue was “an highly personal and private affair for me, and the media will always question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential ethical issues. He placed his holdings into fiduciary arrangements, while retaining certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš stated last month that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but refused to disclose specifics.

Coalition Deal and Foreign Policy Consequences

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

The new government, if approved, is likely to bolster the populist bloc in the region and could strain western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the government agenda include a statement on the government’s position on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

The president has previously stated he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a condition that the ultra-conservative party has said it will meet by nominating independent technocrats.