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Andrej Babiš, the self-styled billionaire that won the recent Czech election, has refused to offload his extensive business interests, while insisting he will resolve a ethical dilemma that might block him from assuming the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the autumn election but did not secure a majority in parliament, stated in a online statement that he will not sell his Agrofert conglomerate, which is active in agriculture, food production, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly said I will address the ethical issue in compliance with national and European laws,” the billionaire commented. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will remove ethical conflicts arising from his corporate dealings before being appointed premier.

The Czech constitution “clearly mandates the head of state to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration noted.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the statement said, noting that Pavel was prepared to appoint Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Legal Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, function in the Czech Republic and other regional countries, receiving substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under national legislation, cabinet members cannot obtaining state support or agreements. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse government deals, or stay out of public office.

Previous Term and Present Plans

Babiš said he would “abide by the laws” if selected as prime minister, but did not want to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will invariably criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.

A judicial body 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 maintained he was “taking steps” to prevent a ethical problem, but declined to reveal specifics.

Governing Agreement and International Implications

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if approved, is likely to strengthen the populist movement in central and eastern Europe and could strain western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the government agenda include a declaration on the official stance on Russia’s war in Ukraine, with a pledge to meeting alliance duties.

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