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Andrej Babiš, the self-proclaimed billionaire that won the recent 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 would not sell his Agrofert group, which is active in agriculture, food processing, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly said I will resolve the conflict of interest in compliance with Czech and European laws,” Babiš commented. “This is not like selling a roll in a bakery.”

President's Requirement

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

The national charter “clearly mandates the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, Pavel's office noted.

The head of state “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was prepared to appoint Babiš as prime minister “immediately” once the matter was settled.

Business Operations and Legal Issues

Babiš's numerous companies, primarily under the Agrofert group, operate in the nation and other regional countries, benefiting from millions of euros in domestic and European farming and other grants, as well as government deals.

Under Czech law, government ministers cannot receiving state support or contracts. The anti-corruption watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, refuse public contracts, or stay out of government.

Previous Tenure and Current Intentions

Babiš affirmed he would “abide by the laws” if selected as prime minister, but did not want to detail how in advance because the matter was “an extremely sensitive and personal matter for me, and journalists will always question me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over possible conflicts of interest. He placed his assets into fiduciary arrangements, while keeping certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to reveal details.

Coalition Agreement and Foreign Policy Consequences

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to strengthen the populist movement in central and eastern Europe and could strain western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme include a declaration on the official stance on Russia’s war in Ukraine, with a pledge to fulfilling Nato obligations.

The president has previously stated he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has indicated it will satisfy by proposing non-partisan experts.