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Andrej Babiš, the self-styled billionaire that secured victory in the recent parliamentary vote, has declined to sell his vast corporate assets, while asserting he will resolve a ethical dilemma that could block him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but lacked a parliamentary majority, stated in a online statement that he will not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

“I have consistently stated I will not sell Agrofert. I have repeatedly said I will address the conflict of interest in accordance with Czech and EU regulations,” the billionaire commented. “This is different from selling a pastry in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove conflicts of interest stemming from his business activities before assuming the role of premier.

The Czech constitution “explicitly requires the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration noted.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to designate Babiš as premier “without delay” once the issue was settled.

Business Operations and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert group, operate in the nation and other regional states, receiving millions of euros in domestic and European agricultural and other grants, as well as government deals.

Under Czech law, government ministers cannot obtaining state support or agreements. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline public contracts, or not enter public office.

Previous Tenure and Current Plans

Babiš said he would “follow the laws” if appointed as premier, but declined to detail how in advance because the issue was “an extremely sensitive and personal matter for me, and journalists will always criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over possible conflicts of interest. He placed his assets into trust funds, while keeping certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš stated last month that he was again the sole owner of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but refused to reveal details.

Coalition Agreement and International Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for 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 bloc in the region and could challenge western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for international relations, also demanded that the coalition’s programme add a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to meeting Nato obligations.

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