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Andrej Babiš, the self-proclaimed billionaire that won last month's Czech election, has refused to offload his vast business interests, while insisting he will resolve a ethical dilemma that might prevent him from assuming the position of head of government.

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the autumn election but lacked a parliamentary majority, declared in a online statement that he will not divest his Agrofert group, which is active in agriculture, food processing, and chemicals.

“I have consistently said I will not sell Agrofert. I have consistently said I will address the ethical issue in compliance with national and European laws,” the billionaire remarked. “This is not like selling a pastry in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, announced that the elderly political figure must clarify openly how he will remove conflicts of interest stemming from his corporate dealings before being appointed premier.

The Czech constitution “clearly mandates the head of state to take into account the possible emergence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office noted.

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

Corporate Activities and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert group, function in the Czech Republic and other regional countries, receiving millions of euros in domestic and European farming and other grants, as well as public contracts.

Under national legislation, cabinet members are barred from receiving state support or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, refuse government deals, or not enter government.

Past Term and Current Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but did not want to detail how in beforehand because the issue was “an extremely sensitive and personal matter for me, and journalists will always criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential conflicts of interest. He placed his holdings into trust funds, while retaining certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to reveal details.

Governing Deal and Foreign Policy Consequences

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The new government, if approved, is expected to bolster the populist bloc in the region and could challenge backing from Western nations 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 international relations, also demanded that the coalition’s programme include a declaration on the government’s position on the conflict in Ukraine, with a commitment to fulfilling alliance duties.

The president has previously stated he would not endorse any ministerial nominees who might question the nation's international alliances, a condition that the far-right SPD has indicated it will satisfy by nominating non-partisan experts.