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Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's parliamentary vote, has refused to offload his vast corporate assets, while insisting he will resolve a ethical dilemma that could block him from taking the role of head of government.

Position on Business Holdings

Babiš, whose ANO party came first in the autumn vote but lacked a majority in parliament, declared in a online statement 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 conflict of interest in accordance with Czech and European laws,” Babiš remarked. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

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

The national charter “explicitly requires the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, Pavel's office explained.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, noting that Pavel was ready to appoint Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Legal Concerns

Babiš's several hundred companies, primarily under the Agrofert group, function in the nation and other regional states, benefiting from substantial funds in national and EU farming and other grants, as well as public contracts.

Under Czech law, cabinet members are barred from receiving public aid or agreements. The ethics watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or stay out of government.

Past Tenure and Present Intentions

Babiš said he would “follow the regulations” if selected as prime minister, but declined to explain how in advance because the issue was “an highly personal and private affair for me, and the media will invariably criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several court cases and an EU investigation over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A court and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but declined to reveal details.

Governing Agreement and Foreign Policy Implications

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The incoming administration, 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 assure him of the nation's backing.

Pavel, who as president has a role for foreign policy, also demanded that the coalition’s programme include a declaration on the official stance on the conflict in Ukraine, including a commitment to meeting Nato obligations.

The head of state has earlier said he would not approve any cabinet candidates who might doubt the nation's international alliances, a condition that the far-right SPD has indicated it will satisfy by proposing non-partisan experts.