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Andrej Babiš, the self-proclaimed billionaire who secured victory in the recent parliamentary vote, has declined to sell 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 Business Holdings

Babiš, whose ANO party came first in the October election but lacked a parliamentary majority, declared in a online statement that he will not divest his Agrofert conglomerate, which operates in farming, food processing, and chemical industries.

“I have repeatedly stated I will not sell Agrofert. I have consistently stated I will address the ethical issue in accordance with national and European laws,” the billionaire remarked. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will eliminate conflicts of interest arising from his corporate dealings before being appointed prime minister.

The Czech constitution “explicitly requires the president to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The president “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the announcement said, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the issue was settled.

Corporate Activities and Legal Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, operate in the nation and other regional countries, benefiting from substantial funds in domestic and European agricultural and other subsidies, as well as public contracts.

Under national legislation, cabinet members cannot receiving public aid or agreements. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline public contracts, or stay out of public office.

Previous Tenure and Current Plans

Babiš said he would “follow the regulations” if appointed as premier, but did not want to detail how in beforehand because the matter was “an extremely sensitive and private affair for me, and the media will always 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 keeping certain control over them.

A court and the EU executive both ruled that this did not suffice. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to disclose details.

Coalition Agreement and International Implications

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The new government, if approved, is expected to bolster the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

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

The president has earlier said he would not endorse any ministerial nominees who might question the nation's international alliances, a requirement that the ultra-conservative party has said it will satisfy by proposing non-partisan experts.