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Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's parliamentary vote, has refused to sell his vast corporate assets, while insisting he will resolve a ethical dilemma that could prevent him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the October election but lacked a majority in parliament, stated in a online statement that he will not divest his Agrofert group, which operates in farming, food processing, and chemicals.

“I have consistently stated I will not sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with Czech and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will remove conflicts of interest arising from his business activities before being appointed premier.

The national charter “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office noted.

The head of state “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the statement said, stating that Pavel was prepared to appoint Babiš as prime minister “without delay” once the matter was settled.

Business Operations and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert group, function in the Czech Republic and other central European states, benefiting from millions of euros in domestic and European farming and other subsidies, as well as public contracts.

Under Czech law, cabinet members are barred from receiving public aid or agreements. The ethics watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or stay out of public office.

Previous Term and Current Intentions

Babiš affirmed he would “abide by the regulations” if appointed as prime minister, but declined to explain how in advance because the issue was “an highly personal and personal matter for me, and journalists will always question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over potential ethical issues. He temporarily moved his holdings into trust funds, while keeping some influence over them.

A judicial body and the European Commission both ruled that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but refused to disclose details.

Governing Deal and International Consequences

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a public vote on leaving 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 the region and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for foreign policy, also requested that the coalition’s programme include a declaration on the government’s position on the conflict in Ukraine, including a pledge to meeting Nato obligations.

The president has previously said he would not approve any ministerial nominees who might doubt the nation's international alliances, a requirement that the far-right SPD has indicated it will meet by nominating independent technocrats.