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Andrej Babiš, the self-proclaimed billionaire that won last month's Czech election, has declined to offload his vast corporate assets, while asserting he will resolve a ethical dilemma that could prevent him from taking the position of head of government.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the October election but did not secure a parliamentary majority, declared in a social media post that he would not divest his Agrofert group, which operates in agriculture, food processing, and chemical industries.

“I have consistently said I will never sell Agrofert. I have consistently said I will address the conflict of interest in compliance with Czech and EU regulations,” Babiš remarked. “This is different from selling a roll in a bakery.”

President's Demand

The head of state, Petr Pavel, stated that the elderly political figure must publicly explain how he will remove ethical conflicts arising from his corporate dealings before being appointed premier.

The national charter “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the ways to address it” when selecting cabinet members, the presidential administration explained.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the matter was settled.

Business Operations and Legal Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional countries, receiving millions of euros in domestic and European agricultural and other subsidies, as well as public contracts.

Under Czech law, cabinet members cannot obtaining public aid or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse public contracts, or not enter public office.

Past Term and Present Intentions

Babiš said he would “follow the laws” if selected as premier, but did not want to explain how in advance because the issue was “an highly personal and personal matter for me, and the media will invariably question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential ethical issues. He placed his assets into fiduciary arrangements, while retaining some influence over them.

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

Governing Agreement and Foreign Policy Consequences

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the far-right, 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 incoming administration, if confirmed, is expected to strengthen the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme include a statement on the government’s position on Russia’s war in Ukraine, including a commitment to fulfilling Nato obligations.

The president has earlier said he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by nominating non-partisan experts.