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Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's parliamentary vote, has refused to sell his vast business interests, while asserting he will resolve a ethical dilemma that could block him from assuming the role of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the October election but did not secure a parliamentary majority, stated in a online statement that he would not sell his Agrofert conglomerate, which is active in farming, food processing, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with national and EU regulations,” the billionaire remarked. “This is different from selling a roll in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, stated that the elderly political figure must clarify openly how he will remove ethical conflicts stemming from his business activities before being appointed prime minister.

The national charter “clearly mandates the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when appointing government ministers, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the statement said, stating that Pavel was ready to appoint Babiš as premier “immediately” once the issue was resolved.

Business Operations and Regulatory Concerns

Babiš's numerous companies, mostly under the Agrofert group, function in the nation and other regional countries, receiving substantial funds in national and EU farming and other grants, as well as government deals.

Under Czech law, government ministers cannot obtaining state support or contracts. The ethics organization Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, refuse government deals, or not enter government.

Past Term and Present Plans

Babiš said he would “abide by the regulations” if appointed as prime minister, but declined to explain how in advance because the issue was “an extremely sensitive and personal matter for me, and the media will invariably criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over possible conflicts of interest. He placed his holdings into fiduciary arrangements, while keeping some influence over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but declined to reveal details.

Coalition Deal and International Consequences

The billionaire populist has signed 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 opposed the EU’s Green Deal.

The incoming administration, if approved, is likely to bolster the populist bloc in the region and might challenge western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

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

The head of state has previously said he would not approve any cabinet candidates who might doubt the Czech Republic’s international alliances, a requirement that the ultra-conservative party has said it will meet by proposing independent technocrats.