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Andrej Babiš, the self-styled billionaire who won last month's parliamentary vote, has declined to sell his extensive business interests, while asserting he will resolve a ethical dilemma that could block him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the autumn election but did not secure a majority in parliament, declared in a social media post that he will not divest his Agrofert group, which operates in agriculture, food processing, and chemicals.

“I have consistently stated I will never sell Agrofert. I have repeatedly said I will address the ethical issue 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 Czech president, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will remove conflicts of interest stemming from his business activities before assuming the role of premier.

The national charter “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The president “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was ready to designate Babiš as premier “immediately” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, primarily under the Agrofert umbrella, operate in the Czech Republic and other central European countries, benefiting from millions of euros in national and EU agricultural and other grants, as well as government deals.

Under national legislation, government ministers are barred from obtaining state support or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, decline public contracts, or stay out of public office.

Past Tenure and Present Intentions

Babiš said he would “abide by the regulations” if appointed as premier, but declined to detail how in beforehand because the issue was “an highly personal 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 legal battles and an European inquiry over possible conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš stated recently that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but declined to reveal details.

Governing Agreement and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if approved, is expected to bolster the populist bloc in the region and might challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda include a declaration on the official stance on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.

The president has earlier said he would not approve any cabinet candidates who might question the nation's international alliances, a condition that the ultra-conservative party has said it will satisfy by nominating independent technocrats.