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Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's parliamentary vote, has declined to sell his extensive corporate assets, while insisting he will resolve a ethical dilemma that could prevent him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn vote but lacked a parliamentary majority, stated in a social media post that he would not sell his Agrofert group, which operates in agriculture, food processing, and chemicals.

“I have repeatedly said I will not sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with national and EU regulations,” the billionaire commented. “This is not like selling a roll in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will eliminate conflicts of interest arising from his corporate dealings before being appointed premier.

The Czech constitution “clearly mandates the president to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, Pavel's office noted.

The head of state “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the statement added, stating that Pavel was prepared to designate Babiš as premier “without delay” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert umbrella, function in the Czech Republic and other regional countries, benefiting from millions of euros in national and EU farming and other grants, as well as government deals.

Under Czech law, government ministers are barred from receiving public aid or agreements. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, refuse government deals, or not enter government.

Previous Term and Current Plans

Babiš said he would “follow the regulations” if appointed as premier, but declined to explain how in beforehand because the issue was “an highly personal and personal matter for me, and journalists will always question me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over possible conflicts of interest. He temporarily moved his assets into trust funds, 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 “implementing measures” to avoid a conflict of interest, but declined to disclose specifics.

Governing Agreement and International Implications

The billionaire populist has concluded a governing pact 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 campaigned against the EU’s Green Deal.

The incoming administration, if approved, is expected to bolster the populist movement in the region 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 government agenda add a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to meeting Nato obligations.

The president has earlier said he would not approve any ministerial nominees who might question the Czech Republic’s international alliances, a requirement that the far-right SPD has said it will satisfy by nominating independent technocrats.