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Andrej Babiš, the self-proclaimed billionaire that secured victory in the recent Czech election, has declined to offload his extensive business interests, while asserting he will address a ethical dilemma that might prevent him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the autumn vote but did not secure a parliamentary majority, stated in a social media post that he would not sell his Agrofert group, which is active in agriculture, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have consistently stated 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 bakeshop.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts arising from his corporate dealings before being appointed prime minister.

The national charter “clearly mandates the president to take into account the potential occurrence of a conflict of interest and the ways to address it” when appointing cabinet members, the presidential administration explained.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement said, noting that Pavel was prepared to appoint Babiš as prime minister “immediately” once the issue was resolved.

Business Operations and Regulatory Issues

Babiš's several hundred companies, primarily under the Agrofert umbrella, function in the nation and other regional countries, receiving millions of euros in national and EU farming and other subsidies, as well as public contracts.

Under Czech law, cabinet members are barred from receiving state support or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, refuse public contracts, or stay out of government.

Past Term and Current Intentions

Babiš affirmed he would “abide by the laws” if appointed as prime minister, but did not want to detail how in beforehand because the issue was “an highly personal and private affair for me, and journalists will invariably criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over possible ethical issues. He temporarily moved his holdings into trust funds, while retaining some influence over them.

A court and the European Commission both ruled that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but refused to reveal details.

Coalition Agreement and International Implications

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The incoming administration, if approved, is likely to bolster the populist bloc in central and eastern Europe and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, with a commitment to fulfilling Nato obligations.

The president has previously stated he would not approve any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has indicated it will satisfy by nominating non-partisan experts.