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Andrej Babiš, the self-proclaimed billionaire who won last month's parliamentary vote, has declined to offload his extensive business interests, while insisting he will resolve a ethical dilemma that could prevent him from assuming the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party came first in the October vote but lacked a majority in parliament, stated in a online statement that he would not divest his Agrofert conglomerate, which operates in farming, food production, and chemicals.

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

Head of State's Requirement

The head of state, Petr Pavel, announced that the elderly populist must publicly explain how he will eliminate ethical conflicts stemming from his business activities before assuming the role of prime minister.

The national charter “clearly mandates the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when appointing cabinet members, Pavel's office explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, stating that Pavel was prepared to designate Babiš as premier “immediately” once the matter was settled.

Business Operations and Regulatory Issues

Babiš's several hundred companies, primarily under the Agrofert umbrella, function in the nation and other central European states, benefiting from substantial funds in domestic and European agricultural and other subsidies, as well as government deals.

Under national legislation, cabinet members cannot obtaining state support or contracts. The ethics watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse government deals, or not enter government.

Past Tenure and Current Intentions

Babiš affirmed he would “abide by the regulations” if selected as premier, but declined to explain how in advance because the matter was “an highly personal and personal matter for me, and the media will invariably question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an European inquiry over potential conflicts of interest. He placed his holdings into fiduciary arrangements, while retaining some influence over them.

A court and the EU executive both ruled that this did not suffice. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but refused to disclose specifics.

Coalition Agreement and Foreign Policy Implications

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if approved, is likely to strengthen the populist movement in central and eastern Europe 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 head of state shares responsibility for foreign policy, also requested that the government agenda add a statement on the official stance on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

The head of state has earlier said he would not approve any cabinet candidates who might question the Czech Republic’s international alliances, a requirement that the far-right SPD has said it will satisfy by proposing non-partisan experts.