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Andrej Babiš, the self-proclaimed billionaire that won the recent Czech election, has declined to sell his extensive corporate assets, while insisting he will resolve a conflict of interest that might prevent him from assuming the role of prime minister.

Position on Corporate Empire

Babiš, whose political movement came first in the October election but lacked a parliamentary majority, declared in a social media post that he would not sell his Agrofert group, which is active in farming, food processing, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently said I will resolve the ethical issue in accordance with Czech and EU regulations,” Babiš remarked. “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 assuming the role of premier.

The national charter “clearly mandates the president to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert group, operate in the Czech Republic and other central European countries, benefiting from substantial funds in domestic and European farming and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot obtaining public aid or agreements. The anti-corruption organization Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or stay out of public office.

Previous Term and Current Plans

Babiš affirmed he would “follow the laws” if selected as prime minister, but did not want to detail how in beforehand because the matter was “an highly personal and private affair for me, and journalists will always criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over potential ethical issues. He placed his assets into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but declined to disclose specifics.

Governing Deal and International Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a referendum 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 strengthen the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for international relations, also demanded that the government agenda include a declaration on the government’s position on the conflict in Ukraine, with a commitment to meeting alliance duties.

The head of state has previously said he would not endorse any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has said it will meet by proposing non-partisan experts.