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Andrej Babiš, the self-styled billionaire that secured victory in last month's Czech election, has declined to offload his extensive corporate assets, while insisting he will address a ethical dilemma that could prevent him from assuming the role of head of government.

Position on Business Holdings

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

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with Czech and European laws,” the billionaire commented. “This is different from selling a roll in a bakery.”

President's Requirement

The head of state, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will eliminate conflicts of interest arising from his business activities before assuming the role of premier.

The national charter “explicitly requires the head of state to take into account the possible emergence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office explained.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the announcement said, noting that Pavel was prepared to appoint Babiš as prime minister “immediately” once the issue was settled.

Business Operations and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert group, operate 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 public aid or agreements. The ethics organization Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, decline government deals, or stay out of public office.

Previous Tenure and Present Plans

Babiš said he would “follow the regulations” if appointed as prime minister, but declined to explain how in advance because the issue was “an highly personal and personal matter for me, and the media will always criticise me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over possible ethical issues. He temporarily moved 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 sole owner of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but refused to reveal specifics.

Governing Deal and International Consequences

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if confirmed, is likely to strengthen the populist bloc in the region and could challenge western support for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also demanded that the coalition’s programme include a declaration on the official stance 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 doubt the nation's EU and Nato commitments, a condition that the far-right SPD has said it will meet by proposing non-partisan experts.