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

Stance on Business Holdings

Babiš, whose ANO party came first in the autumn vote but did not secure a majority in parliament, declared in a social media post that he would not sell his Agrofert group, which is active in agriculture, food production, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with national and European laws,” Babiš remarked. “This is not like selling a roll in a bakeshop.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the elderly populist must clarify openly how he will remove conflicts of interest stemming 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 appointing cabinet members, the presidential administration noted.

The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, stating that Pavel was prepared to appoint Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert group, operate in the Czech Republic and other regional states, receiving millions of euros in domestic and European farming and other grants, as well as public contracts.

Under national legislation, government ministers cannot obtaining state support or agreements. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, refuse public contracts, or not enter government.

Past Term and Present Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but did not want to detail how in beforehand because the issue was “an highly personal and personal matter for me, and journalists will always question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over potential ethical issues. He temporarily moved his holdings into trust funds, while keeping certain control over them.

A court and the European Commission both ruled that this did not suffice. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but declined to reveal specifics.

Coalition Agreement and International Consequences

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a public vote 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 likely to bolster the populist movement in the region and might strain western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for international relations, also demanded that the government agenda add a declaration on the official stance on Russia’s war in Ukraine, including a pledge to fulfilling alliance duties.

The president has earlier said he would not endorse any cabinet candidates who might question the nation's international alliances, a requirement that the far-right SPD has said it will meet by nominating non-partisan experts.