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

Position on Business Holdings

Babiš, whose ANO party came first in the October election but lacked a parliamentary majority, declared in a social media post that he will not divest his Agrofert group, which operates in farming, food processing, and chemical industries.

“I have consistently stated I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in accordance with national and European laws,” Babiš remarked. “This is not like selling a roll in a bakery.”

President's Demand

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

The Czech constitution “explicitly requires the president to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was prepared to appoint Babiš as premier “without delay” once the matter was resolved.

Business Operations and Regulatory Concerns

Babiš's several hundred firms, primarily under the Agrofert umbrella, function in the Czech Republic and other central European states, benefiting from millions of euros in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, government ministers are barred from obtaining state support or agreements. The anti-corruption organization Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, decline government deals, or not enter public office.

Previous Term and Current Intentions

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

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential conflicts of interest. He placed his assets into trust funds, while retaining certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed recently that he was again the sole owner of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but declined to reveal details.

Coalition Deal and Foreign Policy Implications

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 public vote on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The new government, if approved, is likely to strengthen the populist movement in the region and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme add a statement on the government’s position on Russia’s war in Ukraine, including a pledge to fulfilling alliance duties.

The president has earlier stated he would not approve any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will satisfy by nominating non-partisan experts.