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Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's parliamentary vote, has declined to sell his vast corporate assets, while insisting he will resolve a ethical dilemma that could block him from assuming the position of head of government.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the October election but did not secure a parliamentary majority, declared in a online statement that he will not divest his Agrofert group, which is active in agriculture, food processing, and chemical industries.

“I have consistently stated I will not sell Agrofert. I have consistently stated I will resolve the ethical issue in compliance with Czech and EU regulations,” Babiš commented. “This is different from selling a roll in a bakery.”

President's Demand

The head of state, Petr Pavel, announced that the elderly political figure must clarify openly how he will eliminate ethical conflicts arising from his business activities before assuming the role of premier.

The national charter “explicitly requires the head of state to consider the possible emergence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, Pavel's office explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the matter was resolved.

Business Operations and Legal Concerns

Babiš's numerous companies, primarily under the Agrofert umbrella, operate in the Czech Republic and other regional countries, benefiting from substantial funds in national and EU farming and other subsidies, as well as government deals.

Under Czech law, cabinet members cannot receiving public aid or agreements. The anti-corruption watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either divest, refuse government deals, or not enter government.

Past Tenure and Present Plans

Babiš affirmed he would “abide by the regulations” if appointed 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 the media will invariably criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A court and the European Commission both ruled that this was insufficient. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but declined to reveal details.

Governing Agreement and International Implications

The wealthy politician has signed a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if approved, is likely to bolster the populist movement in the region and could strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state has a role for foreign policy, also requested that the government agenda include a declaration on the official stance on the conflict in Ukraine, with a commitment to meeting alliance duties.

The head of state has earlier stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by proposing non-partisan experts.