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Andrej Babiš, the self-styled billionaire that won last month's parliamentary vote, has refused to sell his vast business interests, while asserting he will address a ethical dilemma that could block him from assuming the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party came first in the October election but lacked a majority in parliament, declared in a social media post that he will not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly said I will resolve the ethical issue in accordance with Czech and EU regulations,” Babiš commented. “This is not like selling a roll in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will remove conflicts of interest arising from his business activities before being appointed premier.

The national charter “clearly mandates the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when appointing cabinet members, the presidential administration explained.

The president “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was ready to designate Babiš as prime minister “without delay” once the issue was settled.

Corporate Activities and Regulatory Issues

Babiš's numerous firms, primarily under the Agrofert umbrella, operate in the Czech Republic and other regional states, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers are barred from obtaining public aid or agreements. The ethics watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, refuse government deals, or stay out of public office.

Past Term and Present Intentions

Babiš said he would “follow the regulations” if selected as prime minister, but declined to detail how in advance because the matter was “an extremely sensitive and private affair 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 possible conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš stated recently that he was again the sole owner of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but refused to disclose specifics.

Coalition Deal and International Implications

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, 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 Green Deal.

The new government, if confirmed, is likely to bolster the populist movement in central and eastern Europe and might strain western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president 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, with a commitment to fulfilling Nato obligations.

The head of state has earlier said he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a condition that the far-right SPD has indicated it will meet by nominating non-partisan experts.