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Andrej Babiš, the self-styled billionaire that secured victory in last month's Czech election, has refused to sell his vast corporate assets, while insisting he will resolve a ethical dilemma that might prevent him from taking 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 parliamentary majority, declared in a online statement that he would not sell his Agrofert conglomerate, which is active in agriculture, food production, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with national and European laws,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the elderly populist must publicly explain how he will eliminate ethical conflicts stemming from his corporate dealings before being appointed premier.

The national charter “clearly mandates the head of state to consider the possible emergence of a ethical issue and the ways to address it” when appointing government ministers, Pavel's office noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the announcement added, noting that Pavel was ready to designate Babiš as prime minister “without delay” once the issue was resolved.

Business Operations and Legal Issues

Babiš's several hundred firms, primarily under the Agrofert umbrella, operate in the nation and other central European countries, receiving millions of euros in domestic and European agricultural and other grants, as well as government deals.

Under national legislation, cabinet members are barred from receiving public aid or agreements. The ethics organization Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, refuse government deals, or not enter government.

Past Term and Current Plans

Babiš affirmed he would “follow the laws” if appointed as premier, but did not want to explain how in advance because the matter was “an extremely sensitive and private affair for me, and journalists will invariably criticise me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over possible conflicts of interest. He placed his assets into fiduciary arrangements, while keeping some influence over them.

A court and the EU executive both determined that this did not suffice. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but refused to reveal details.

Governing Agreement and International Implications

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if approved, is expected to bolster the populist bloc in central and eastern Europe and could challenge western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for foreign policy, also demanded that the government agenda include a statement on the government’s position on the conflict in Ukraine, with a commitment to meeting alliance duties.

The head of state has earlier stated he would not endorse any ministerial nominees who might doubt the nation's international alliances, a requirement that the ultra-conservative party has said it will satisfy by proposing independent technocrats.