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Andrej Babiš, the self-styled billionaire who secured victory in the recent Czech election, has refused to sell his vast business interests, while asserting he will address a ethical dilemma that could prevent him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but lacked a majority in parliament, stated in a social media post that he will not divest his Agrofert group, which operates in agriculture, food production, and chemical industries.

“I have consistently said I will never sell Agrofert. I have repeatedly stated I will resolve the conflict of interest in compliance with national and EU regulations,” the billionaire remarked. “This is different from selling a roll in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will remove ethical conflicts stemming from his corporate dealings before being appointed premier.

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

The head of state “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 premier “without delay” once the issue was settled.

Corporate Activities and Legal Issues

Babiš's several hundred firms, mostly under the Agrofert umbrella, operate in the nation and other regional countries, benefiting from substantial funds in domestic and European agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers are barred from receiving public aid or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline government deals, or stay out of public office.

Previous Tenure and Present Intentions

Babiš said he would “abide by the regulations” if selected as premier, but did not want to detail how in advance because the matter was “an highly personal and personal matter for me, and the media will invariably criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several court cases and an European inquiry over potential ethical issues. He temporarily moved his assets into trust funds, while retaining certain control over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but refused to reveal details.

Coalition Agreement and Foreign Policy Implications

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

The incoming administration, if confirmed, is expected to bolster the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for foreign policy, also demanded that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, with a commitment to meeting Nato obligations.

The president has earlier stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s international alliances, a requirement that the far-right SPD has said it will satisfy by nominating independent technocrats.