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

Stance on Business Holdings

Babiš, whose political movement came first in the October vote but lacked a majority in parliament, stated in a online statement that he would not divest his Agrofert group, which is active in farming, food processing, and chemicals.

“I have consistently said I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in accordance with Czech and EU regulations,” the billionaire commented. “This is different from selling a roll in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will eliminate ethical conflicts stemming from his business activities before assuming the role of prime minister.

The national charter “explicitly requires the president to consider the possible emergence of a conflict of interest and the ways to address it” when appointing government ministers, the presidential administration explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement added, noting that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was resolved.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the nation and other central European states, receiving substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under Czech law, cabinet members cannot receiving public aid or agreements. The anti-corruption organization Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, decline government deals, or stay out of public office.

Past Term and Present Plans

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

During his first term as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible ethical issues. He placed his holdings into fiduciary arrangements, while keeping certain control over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš stated recently that he was once more the sole owner of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but declined to disclose details.

Coalition Deal and International Implications

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if confirmed, is expected to bolster the populist movement in the region and could strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for international relations, also requested that the government agenda include a statement on the government’s position on the conflict in Ukraine, including a pledge to fulfilling Nato obligations.

The head of state has previously said he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has said it will meet by nominating non-partisan experts.