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Andrej Babiš, the self-styled billionaire who secured victory in last month's Czech election, has declined to offload his vast corporate assets, while asserting he will address a ethical dilemma that could prevent him from taking the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the October election but did not secure a parliamentary majority, declared in a online statement that he would not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with Czech and European laws,” the billionaire remarked. “This is not like selling a roll in a bakeshop.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the elderly populist must clarify openly how he will remove conflicts of interest stemming from his corporate dealings 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 noted.

The president “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the announcement said, noting that Pavel was ready to designate Babiš as premier “immediately” once the issue was settled.

Business Operations and Regulatory Concerns

Babiš's numerous companies, mostly under the Agrofert group, function in the nation and other central European countries, benefiting from millions of euros in national and EU agricultural and other grants, as well as public contracts.

Under national legislation, government ministers cannot obtaining state support or contracts. The ethics organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or not enter government.

Previous Term and Present Intentions

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

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over potential conflicts of interest. He temporarily moved his assets into trust funds, while keeping certain control over them.

A court and the European Commission both determined that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but declined to disclose details.

Coalition Deal and Foreign Policy Implications

The wealthy politician has signed a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if approved, is expected to bolster the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for international relations, also demanded that the government agenda add a statement on the official stance on the conflict in Ukraine, with a commitment to meeting alliance duties.

The president has earlier said he would not endorse any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has said it will meet by nominating independent technocrats.