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Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's parliamentary vote, has declined to offload his extensive corporate assets, while insisting he will address a ethical dilemma that might block him from assuming the position of prime minister.

Position on Corporate Empire

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

“I have consistently said I will never sell Agrofert. I have repeatedly said I will address the conflict of interest in accordance with Czech and European laws,” the billionaire remarked. “This is not like selling a roll in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will remove ethical conflicts stemming from his business activities before being appointed prime minister.

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement said, noting that Pavel was ready to appoint Babiš as prime minister “immediately” once the issue was settled.

Business Operations and Regulatory Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional states, receiving millions of euros in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers cannot receiving state support or agreements. The anti-corruption watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either sell, refuse public contracts, or stay out of public office.

Previous Term and Present Plans

Babiš said he would “abide by the regulations” if selected as prime minister, but declined to detail how in beforehand because the matter was “an highly personal and personal matter for me, and the media will always criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over possible ethical issues. He placed his assets into trust funds, while keeping certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but refused to reveal specifics.

Coalition Agreement and International Consequences

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

The new government, if confirmed, is expected to strengthen the populist bloc in the region and might strain western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, including a commitment to fulfilling Nato obligations.

The head of state has previously said he would not endorse any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has indicated it will meet by nominating independent technocrats.