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Andrej Babiš, the self-proclaimed billionaire that won last month's Czech election, has refused to sell his extensive business interests, while asserting he will resolve a ethical dilemma that might prevent him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the October vote but lacked a parliamentary majority, stated in a social media post that he would not sell his Agrofert group, which is active in farming, food production, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have consistently stated I will address the conflict of interest in compliance with national and European laws,” the billionaire commented. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the elderly political figure must publicly explain how he will eliminate ethical conflicts arising from his corporate dealings before being appointed premier.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting government ministers, Pavel's office noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the announcement added, stating that Pavel was ready to designate Babiš as prime minister “without delay” once the matter was settled.

Business Operations and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert group, operate in the Czech Republic and other central European states, receiving millions of euros in domestic and European farming and other grants, as well as government deals.

Under national legislation, government ministers cannot obtaining state support or contracts. The ethics watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, refuse government deals, or not enter government.

Previous Term and Present Plans

Babiš affirmed he would “follow the laws” if appointed as prime minister, but did not want to detail how in beforehand because the matter was “an extremely sensitive and personal matter for me, and the media will always criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over possible ethical issues. He placed his holdings into fiduciary arrangements, while retaining certain control over them.

A court and the European Commission both ruled that this did not suffice. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but refused to reveal specifics.

Governing Deal and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, 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 environmental policy.

The new government, if approved, is likely to strengthen the populist movement in the region and could strain western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for foreign policy, also requested that the government agenda include a statement on the official stance on Russia’s war in Ukraine, including a commitment to fulfilling Nato obligations.

The president has earlier stated he would not endorse any cabinet candidates who might question the Czech Republic’s international alliances, a requirement that the ultra-conservative party has said it will satisfy by proposing non-partisan experts.