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Andrej Babiš, the self-proclaimed billionaire who secured victory in last month's Czech election, has refused to sell his vast business interests, while asserting he will address a ethical dilemma that could block him from assuming the role of head of government.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the October vote but lacked a parliamentary majority, declared in a online statement that he will not divest his Agrofert conglomerate, which is active in farming, food processing, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have consistently stated I will resolve the conflict of interest in accordance with national and EU regulations,” Babiš remarked. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

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

The national charter “explicitly requires the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when selecting government ministers, Pavel's office explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was ready to designate Babiš as premier “immediately” once the issue was settled.

Corporate Activities and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert group, operate in the Czech Republic and other regional states, receiving millions of euros in national and EU farming and other subsidies, as well as government deals.

Under national legislation, cabinet members are barred from receiving state support or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline public contracts, or not enter public office.

Past Tenure and Present Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but declined to explain how in advance because the issue was “an extremely sensitive and personal matter for me, and the media will always criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over possible conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while keeping some influence over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš stated recently that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to disclose details.

Governing Agreement and Foreign Policy Implications

The wealthy politician has signed a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a public vote 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 expected to bolster the populist bloc in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme add a statement on the government’s position on the conflict in Ukraine, including a pledge to meeting Nato obligations.

The president has earlier stated he would not endorse any cabinet candidates who might doubt the nation's international alliances, a requirement that the far-right SPD has said it will meet by proposing non-partisan experts.