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Andrej Babiš, the self-proclaimed billionaire who won the recent Czech election, has refused to sell his vast corporate assets, while asserting he will resolve a ethical dilemma that could block him from taking the position of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a majority in parliament, declared in a social media post that he will 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 said I will resolve the conflict of interest in accordance with Czech and European laws,” Babiš commented. “This is not like selling a roll in a bakery.”

President's Requirement

The Czech president, Petr Pavel, announced that the elderly populist must clarify openly how he will remove ethical conflicts stemming from his business activities before assuming the role of prime minister.

The national charter “clearly mandates the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, Pavel's office explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to designate Babiš as prime minister “without delay” once the matter was resolved.

Business Operations and Regulatory Issues

Babiš's several hundred firms, primarily under the Agrofert umbrella, function in the Czech Republic and other central European countries, receiving millions of euros in domestic and European farming and other subsidies, as well as public contracts.

Under Czech law, government ministers are barred from receiving state support or agreements. The anti-corruption organization Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, refuse public contracts, or stay out of public office.

Past Tenure and Current Intentions

Babiš affirmed he would “abide by the regulations” if appointed as prime minister, but declined 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 premier, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over potential conflicts of interest. He placed his assets into trust funds, while retaining some influence over them.

A judicial body and the European Commission both ruled that this was insufficient. Babiš confirmed last month that he was once more the sole owner of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but refused to disclose specifics.

Governing Deal and Foreign Policy Consequences

The wealthy politician has signed a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if confirmed, is expected to bolster the populist bloc in the region and could strain western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state has a role for foreign policy, also demanded that the government agenda include a declaration on the official stance on Russia’s war in Ukraine, including a pledge to fulfilling alliance duties.

The head of state has previously stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will satisfy by proposing independent technocrats.