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Andrej Babiš, the self-styled billionaire that won the recent Czech election, has refused to offload his extensive corporate assets, while insisting he will resolve a ethical dilemma that might prevent him from assuming the role of head of government.

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the October vote but did not secure a majority in parliament, declared in a online statement that he will not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have consistently said I will address the ethical issue in compliance with national and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakery.”

President's Demand

The head of state, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will eliminate ethical conflicts arising from his corporate dealings before being appointed prime minister.

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the statement added, stating that Pavel was prepared to designate Babiš as premier “immediately” once the issue was settled.

Business Operations and Legal Issues

Babiš's numerous firms, primarily under the Agrofert group, function in the nation and other regional countries, benefiting from millions of euros in domestic and European agricultural and other grants, as well as government deals.

Under national legislation, government ministers are barred from receiving public aid or agreements. The ethics watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, decline government deals, or not enter public office.

Previous Tenure and Current Intentions

Babiš affirmed he would “follow the laws” if selected as premier, but did not want to detail how in beforehand because the matter was “an extremely sensitive and personal matter for me, and journalists will invariably question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over potential conflicts of interest. He placed his assets into fiduciary arrangements, while keeping some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated last month that he was again the sole owner of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but declined to reveal specifics.

Coalition Agreement and International Implications

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The incoming administration, if approved, is expected to strengthen the populist movement in central and eastern Europe and could strain western support for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for international relations, also requested that the government agenda include a declaration on the government’s position on Russia’s war in Ukraine, with a commitment to meeting Nato obligations.

The head of state has previously stated he would not approve any ministerial nominees who might question the nation's EU and Nato commitments, a condition that the far-right SPD has indicated it will satisfy by proposing non-partisan experts.