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Andrej Babiš, the self-proclaimed billionaire that won the recent Czech election, has declined to sell his extensive business interests, while insisting he will address a ethical dilemma that could block him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party came first in the autumn election but did not secure a majority in parliament, stated in a online statement that he would not sell his Agrofert group, which is active in farming, food processing, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have consistently said I will address the conflict of interest in compliance with Czech and European laws,” Babiš commented. “This is different from selling a roll in a bakery.”

Head of State's Requirement

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

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

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, stating that Pavel was ready to appoint Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's numerous companies, mostly under the Agrofert group, operate in the Czech Republic and other central European countries, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as government deals.

Under national legislation, cabinet members cannot receiving public aid or agreements. The ethics organization Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, refuse government deals, or stay out of public office.

Past Tenure and Present Intentions

Babiš said he would “follow the laws” if appointed as premier, but declined to detail how in beforehand because the matter was “an extremely sensitive and private affair for me, and journalists will always question me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible ethical issues. He temporarily moved his holdings into trust funds, while retaining certain control over them.

A judicial body 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 “taking steps” to prevent a conflict of interest, but refused to reveal details.

Governing Deal and International Implications

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if approved, is likely to bolster the populist movement in the region and could strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

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

The head of state has previously said he would not approve any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has indicated it will satisfy by nominating non-partisan experts.