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Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's Czech election, has refused to offload his extensive corporate assets, while insisting he will resolve a ethical dilemma that might prevent him from assuming the role of head of government.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn election but did not secure a majority in parliament, 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 never sell Agrofert. I have repeatedly stated I will resolve the ethical issue in compliance with Czech and EU regulations,” Babiš remarked. “This is different from selling a roll in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will eliminate conflicts of interest arising from his corporate dealings before assuming the role of premier.

The Czech constitution “clearly mandates the head of state to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, Pavel's office noted.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, noting that Pavel was ready to appoint Babiš as prime minister “immediately” once the matter was settled.

Business Operations and Legal Issues

Babiš's numerous firms, primarily under the Agrofert group, operate in the nation and other regional states, benefiting from substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, government ministers are barred from obtaining public aid or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse government deals, or stay out of public office.

Past Tenure and Current Plans

Babiš said he would “abide by the regulations” if appointed as prime minister, but did not want to explain how in advance because the matter was “an extremely sensitive and personal matter for me, and the media will always question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over potential ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to reveal specifics.

Governing Agreement and Foreign Policy Consequences

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if confirmed, is likely to strengthen the populist bloc in the region and might challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for international relations, also requested that the coalition’s programme add a statement on the official stance on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The president has earlier stated he would not approve any ministerial nominees who might question the nation's EU and Nato commitments, a condition that the far-right SPD has said it will meet by proposing non-partisan experts.