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Andrej Babiš, the self-proclaimed billionaire who secured victory in the recent parliamentary vote, has refused to offload his extensive business interests, while asserting he will address a ethical dilemma that might prevent him from taking the role of head of government.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the October vote but did not secure a majority in parliament, declared in a social media post that he will not sell his Agrofert conglomerate, which is active in farming, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with Czech and EU regulations,” Babiš remarked. “This is different from selling a pastry in a bakery.”

President's Requirement

The Czech president, Petr Pavel, stated that the elderly political figure must publicly explain how he will eliminate conflicts of interest stemming from his business activities before being appointed prime minister.

The Czech constitution “clearly mandates the president to consider the possible emergence of a conflict of interest and the ways to address it” when appointing cabinet members, the presidential administration noted.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement said, stating that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Business Operations and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the Czech Republic and other regional states, receiving millions of euros in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members are barred from receiving public aid or agreements. The ethics watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or stay out of government.

Past Tenure and Present Plans

Babiš said he would “follow the laws” if selected as prime minister, but declined to detail how in beforehand because the issue was “an extremely sensitive and private affair for me, and the media will invariably question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A court and the European Commission both ruled that this did not suffice. 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 declined to disclose specifics.

Governing Agreement and Foreign Policy Implications

The billionaire populist has concluded a governing pact 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 primarily 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 challenge western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the coalition’s programme include a statement on the official stance on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.

The president has earlier said he would not approve any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has said it will meet by nominating independent technocrats.