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

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the October election but lacked a majority in parliament, declared in a online statement that he will not sell his Agrofert group, which operates in agriculture, food production, and chemicals.

“I have consistently said I will not sell Agrofert. I have consistently said I will resolve the ethical issue in compliance with Czech and European laws,” the billionaire commented. “This is different from selling a roll in a bakery.”

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 corporate dealings before being appointed prime minister.

The Czech constitution “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, the presidential administration noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the announcement added, noting that Pavel was ready to appoint Babiš as prime minister “immediately” once the issue was resolved.

Business Operations and Regulatory Issues

Babiš's several hundred firms, primarily under the Agrofert group, function in the Czech Republic and other central European countries, receiving substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under national legislation, cabinet members are barred from obtaining state support or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse government deals, or stay out of public office.

Previous Tenure and Current Intentions

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

During his initial tenure as premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential conflicts of interest. He placed his assets into trust funds, while keeping some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to reveal details.

Coalition Deal and International Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to strengthen the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda include a declaration on the government’s position on the conflict in Ukraine, including a pledge to meeting alliance duties.

The head of state has earlier said he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a requirement that the ultra-conservative party has said it will meet by proposing independent technocrats.