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Andrej Babiš, the self-styled billionaire that won last month's Czech election, has refused to sell his vast business interests, while asserting he will resolve a ethical dilemma that could block him from assuming the role of head of government.

Stance on Corporate Empire

Babiš, whose political movement came first in the October vote but lacked a majority in parliament, stated in a social media post that he will not divest his Agrofert conglomerate, which is active in farming, food processing, and chemicals.

“I have consistently stated I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in accordance with Czech and EU regulations,” the billionaire remarked. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will eliminate conflicts of interest arising from his corporate dealings before assuming the role of prime minister.

The Czech constitution “explicitly requires the president to take into account the possible emergence of a ethical issue and the ways to address it” when selecting cabinet members, the presidential administration explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the statement said, stating that Pavel was ready to appoint Babiš as premier “immediately” once the matter was resolved.

Business Operations and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the nation and other central European states, receiving millions of euros in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, cabinet members cannot receiving public aid or agreements. The ethics watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse government deals, or stay out of public office.

Past Tenure and Present Plans

Babiš affirmed he would “follow the laws” if selected as premier, but declined to detail how in beforehand because the issue was “an extremely sensitive and personal matter for me, and the media will invariably criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over potential conflicts of interest. He temporarily moved his assets into trust funds, while keeping certain control over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but declined to disclose details.

Governing Agreement and Foreign Policy Implications

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is expected to strengthen the populist bloc in central and eastern Europe and could strain western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for international relations, also requested that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, including a pledge to fulfilling alliance duties.

The president has earlier stated he would not endorse any cabinet candidates who might question the nation's international alliances, a condition that the far-right SPD has said it will satisfy by proposing non-partisan experts.