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Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's Czech election, has refused to offload his vast business interests, while asserting he will address a ethical dilemma that could block him from taking the position of prime minister.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn election but lacked a majority in parliament, stated in a online statement that he will not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

“I have consistently said I will not sell Agrofert. I have consistently said I will address the ethical issue in accordance with Czech and European laws,” Babiš commented. “This is different from selling a pastry in a bakeshop.”

President's Demand

The head of state, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will eliminate ethical conflicts stemming from his corporate dealings before being appointed premier.

The national charter “clearly mandates the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, Pavel's office noted.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Regulatory Issues

Babiš's numerous firms, primarily under the Agrofert group, function in the nation and other regional states, receiving millions of euros in domestic and European farming and other subsidies, as well as public contracts.

Under Czech law, government ministers cannot obtaining public aid or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse government deals, or not enter government.

Previous Tenure and Current Intentions

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

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over possible ethical issues. He temporarily moved his holdings into trust funds, 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 again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but refused to reveal details.

Governing Deal and Foreign Policy Consequences

The wealthy politician has signed a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian 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 new government, if confirmed, is likely to bolster the populist movement in the region and might strain western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for international relations, also requested that the government agenda add a declaration on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has earlier stated he would not endorse any ministerial nominees who might question the nation's international alliances, a requirement that the ultra-conservative party has said it will satisfy by nominating non-partisan experts.