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Andrej Babiš, the self-proclaimed billionaire who won the recent Czech election, has declined to offload his vast business interests, while asserting he will resolve a ethical dilemma that could prevent him from taking the role of prime minister.

Stance on Business Holdings

Babiš, whose ANO party came first in the autumn election but did not secure a parliamentary majority, stated in a social media post that he would not sell his Agrofert conglomerate, which operates in farming, food processing, and chemicals.

“I have consistently said I will never sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with national and European laws,” Babiš remarked. “This is not like selling a roll in a bakery.”

President's Requirement

The head of state, Petr Pavel, announced that the elderly political figure must clarify openly 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 head of state to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting cabinet members, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, stating that Pavel was prepared to designate Babiš as premier “without delay” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, function in the Czech Republic and other regional states, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as public contracts.

Under national legislation, government ministers are barred from receiving public aid or agreements. The anti-corruption organization Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, decline government deals, or stay out of government.

Past Term and Present Plans

Babiš said he would “follow the laws” if appointed as prime minister, but did not want to explain how in advance because the matter was “an highly personal and personal matter for me, and journalists will always criticise me anyway”.

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

A judicial body and the EU executive both determined that this was insufficient. Babiš confirmed last month that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but refused to reveal specifics.

Governing Agreement and Foreign Policy Implications

The wealthy politician has signed a governing pact with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if approved, is expected to strengthen the populist bloc in central and eastern Europe and could challenge 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 shares responsibility for international relations, also requested that the government agenda add a declaration on the official stance on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The head of state has earlier said he would not endorse any ministerial nominees who might doubt the Czech Republic’s international alliances, a requirement that the ultra-conservative party has indicated it will satisfy by proposing non-partisan experts.