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Andrej Babiš, the self-proclaimed billionaire who secured victory in the recent Czech election, has refused to sell his extensive business interests, while insisting he will resolve a ethical dilemma that could prevent him from assuming the position of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a majority in parliament, stated in a social media post that he will not divest his Agrofert group, which operates in agriculture, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have repeatedly said I will address the ethical issue in accordance with Czech and European laws,” the billionaire remarked. “This is not like selling a roll in a bakeshop.”

Head of State's Requirement

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

The national charter “clearly mandates the president to take into account the potential occurrence of a ethical issue and the ways to address it” when appointing government ministers, 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 statement said, noting that Pavel was ready to appoint Babiš as premier “without delay” once the issue was settled.

Business Operations and Legal Concerns

Babiš's several hundred companies, mostly under the Agrofert group, function in the nation and other regional countries, receiving substantial funds in national and EU agricultural and other subsidies, as well as public contracts.

Under Czech law, government ministers cannot receiving public aid or agreements. The ethics organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or not enter government.

Past Term and Present Plans

Babiš affirmed he would “follow the laws” if selected as premier, but did not want to detail how in beforehand because the matter was “an extremely sensitive and personal matter for me, and the media will invariably question me anyway”.

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

A court and the European Commission both determined that this was insufficient. Babiš confirmed last month that he was once more the sole owner of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but refused to reveal details.

Governing Agreement and Foreign Policy Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if confirmed, is likely to strengthen the populist movement in the region and could strain western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for foreign policy, also requested that the coalition’s programme include a statement on the official stance on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.

The head of state has previously said he would not endorse any cabinet candidates who might doubt the nation's international alliances, a condition that the ultra-conservative party has indicated it will meet by nominating independent technocrats.