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Andrej Babiš, the self-proclaimed billionaire who secured victory in last month's Czech election, has declined to sell his vast business interests, while asserting he will address a ethical dilemma that might block him from assuming the position of head of government.

Stance on Business Holdings

Babiš, whose political movement came first in the autumn vote but lacked a majority in parliament, stated in a online statement that he would not divest his Agrofert group, which is active in agriculture, food processing, and chemicals.

“I have consistently said I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in accordance with national and EU regulations,” the billionaire commented. “This is different from selling a pastry in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts stemming from his business activities before assuming the role of premier.

The Czech constitution “clearly mandates the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, noting that Pavel was ready to appoint Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional states, receiving millions of euros in domestic and European agricultural and other subsidies, as well as public contracts.

Under Czech law, cabinet members cannot receiving state support or contracts. The anti-corruption watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, decline public contracts, or stay out of government.

Past Term and Present Plans

Babiš affirmed he would “follow the laws” if selected as premier, but declined to explain how in beforehand because the matter was “an highly personal and private affair for me, and journalists will invariably question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential ethical issues. He temporarily moved his assets into trust funds, while retaining certain control over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but declined to reveal specifics.

Governing Deal and International Implications

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The new government, if confirmed, is expected to strengthen the populist movement in the region and might challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme add a declaration on the official stance on the conflict in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has previously stated he would not endorse any cabinet candidates who might doubt the nation's EU and Nato commitments, a condition that the far-right SPD has said it will meet by proposing non-partisan experts.