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Andrej Babiš, the self-styled billionaire that secured victory in last month's parliamentary vote, has declined to offload his vast business interests, while asserting he will address 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 did not secure a parliamentary majority, stated in a social media post that he would not sell his Agrofert conglomerate, which is active in farming, food processing, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have consistently said I will resolve the ethical issue in accordance with national and European laws,” the billionaire remarked. “This is different from selling a roll in a bakery.”

President's Requirement

The head of state, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will remove conflicts of interest stemming from his business activities before assuming the role of prime minister.

The Czech constitution “clearly mandates the president to consider the potential occurrence of a conflict of interest and the ways to address it” when selecting government ministers, the presidential administration explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement added, noting that Pavel was ready to appoint Babiš as prime minister “immediately” once the matter was resolved.

Corporate Activities and Legal Concerns

Babiš's several hundred companies, primarily under the Agrofert umbrella, function in the nation and other central European countries, benefiting from substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under national legislation, government ministers 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 not enter public office.

Past Term and Present Intentions

Babiš said he would “abide by the laws” if appointed as prime minister, but declined to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential ethical issues. He temporarily moved his assets into trust funds, while keeping some influence over them.

A judicial body 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 “taking steps” to prevent a conflict of interest, but refused to reveal specifics.

Coalition Deal and International Implications

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if confirmed, is expected to strengthen the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for international relations, also demanded that the government agenda include a statement on the official stance on Russia’s war in Ukraine, including a commitment to fulfilling Nato obligations.

The president has earlier said he would not approve any cabinet candidates who might question the nation's international alliances, a requirement that the ultra-conservative party has said it will meet by proposing independent technocrats.