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Andrej Babiš, the self-styled tycoon that won last month's parliamentary vote, has declined to sell his vast business interests, while asserting he will address a ethical dilemma that might block him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose political movement 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 processing, and chemicals.

“I have consistently said I will not sell Agrofert. I have repeatedly stated I will resolve the conflict of interest in accordance with national and EU regulations,” the billionaire remarked. “This is not like selling a roll in a bakery.”

President's Requirement

The head of state, Petr Pavel, stated that the elderly political figure must clarify openly how he will remove ethical conflicts stemming from his corporate dealings before assuming the role of premier.

The Czech constitution “explicitly requires the president to consider the potential occurrence of a ethical issue and the ways to address it” when appointing government ministers, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was prepared to appoint Babiš as prime minister “immediately” once the issue was settled.

Business Operations and Legal Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, operate in the nation and other central European countries, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as public contracts.

Under national legislation, cabinet members are barred from obtaining public aid or contracts. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or not enter public office.

Previous Term and Present Intentions

Babiš said he would “follow 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 journalists will always criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over possible conflicts of interest. He placed his holdings into fiduciary arrangements, while retaining some influence over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but refused to disclose specifics.

Governing Deal and International Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The new government, if approved, is expected to strengthen the populist movement in central and eastern Europe and might challenge western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for foreign policy, also demanded that the coalition’s programme include a declaration on the government’s position on Russia’s war in Ukraine, including a commitment to meeting alliance duties.

The president has previously stated he would not endorse any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will meet by nominating non-partisan experts.