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Andrej Babiš, the self-styled billionaire that secured victory in the recent Czech election, has refused to sell his extensive corporate assets, while insisting he will resolve a ethical dilemma that could prevent him from assuming the position of head of government.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn vote but lacked a majority in parliament, declared in a social media post that he will not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

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

Head of State's Requirement

The head of state, Petr Pavel, stated that the elderly populist must publicly explain how he will eliminate conflicts of interest arising from his corporate dealings before being appointed premier.

The national charter “clearly mandates the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when appointing government ministers, the presidential administration noted.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement added, noting that Pavel was ready to designate Babiš as prime minister “without delay” once the issue 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 states, benefiting from millions of euros in domestic and European farming and other grants, as well as public contracts.

Under Czech law, government ministers cannot obtaining state support or agreements. The ethics organization Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse public contracts, or stay out of government.

Previous Term and Current Intentions

Babiš affirmed he would “follow the regulations” if appointed as premier, but declined to detail how in advance because the matter was “an extremely sensitive and private affair for me, and the media will invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several 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 court and the EU executive both ruled that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to disclose details.

Governing Agreement and Foreign Policy Consequences

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if confirmed, is likely to strengthen the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

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

The president has earlier said he would not approve any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will meet by proposing non-partisan experts.