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Andrej Babiš, the self-styled billionaire who won last month's parliamentary vote, has declined to offload his extensive business interests, while insisting he will address a ethical dilemma that could prevent him from assuming the role of prime minister.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but lacked a majority in parliament, stated in a social media post that he would not divest his Agrofert conglomerate, which operates in farming, food processing, and chemical industries.

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

President's Demand

The Czech president, Petr Pavel, stated that the elderly populist must clarify openly how he will remove conflicts of interest arising from his business activities before being appointed premier.

The national charter “clearly mandates the president to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting cabinet members, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the statement added, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Legal Issues

Babiš's numerous firms, primarily under the Agrofert group, operate in the nation and other central European countries, receiving millions of euros in domestic and European agricultural and other grants, as well as public contracts.

Under Czech law, cabinet members are barred from obtaining public aid or agreements. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, decline public contracts, or stay out of government.

Past Tenure and Current Plans

Babiš affirmed he would “abide by the regulations” if selected as premier, 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 anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over possible ethical issues. He temporarily moved his assets into trust funds, while retaining certain control over them.

A court and the European Commission both ruled that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but declined to reveal details.

Governing Deal and International Implications

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if approved, is likely to strengthen the populist bloc in the region and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme add a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.

The head of state has earlier stated he would not endorse any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by proposing non-partisan experts.