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Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's Czech election, has refused to offload his vast business interests, while asserting he will address a ethical dilemma that could prevent him from taking the position of prime minister.

Position on Corporate Empire

Babiš, whose political movement came first in the October vote but lacked a majority in parliament, declared in a online statement that he will not divest his Agrofert conglomerate, which operates in farming, food production, and chemicals.

“I have repeatedly 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 not like selling a roll in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the elderly populist must clarify openly how he will remove conflicts of interest arising from his business activities before assuming the role of prime minister.

The national charter “clearly mandates the president to consider the possible emergence of a ethical issue and the ways to address it” when selecting cabinet members, Pavel's office explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the Czech Republic and other regional states, benefiting from substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The anti-corruption organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, refuse public contracts, or stay out of government.

Previous Tenure and Current Intentions

Babiš affirmed he would “follow the regulations” if appointed as premier, but declined to detail how in beforehand because the matter was “an highly personal and private affair for me, and the media will invariably criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both ruled that this did not suffice. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to disclose specifics.

Governing Agreement and International Implications

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if approved, is expected to strengthen the populist bloc in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also demanded that the coalition’s programme include a statement on the official stance on Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.

The president has previously said he would not approve 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 independent technocrats.