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Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent Czech election, has declined to offload his extensive corporate assets, while insisting he will resolve a ethical dilemma that could block him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the autumn election but lacked a parliamentary majority, declared in a online statement that he would not divest his Agrofert group, which is active in agriculture, food production, and chemical industries.

“I have consistently stated I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in accordance with Czech and European laws,” Babiš remarked. “This is not like selling a roll in a bakeshop.”

President's Requirement

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

The Czech constitution “clearly mandates the head of state to consider the potential occurrence of a conflict of interest and the ways to address it” when appointing cabinet members, Pavel's office noted.

The head of state “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the statement added, noting that Pavel was prepared to appoint Babiš as premier “immediately” once the issue was resolved.

Business Operations and Regulatory Concerns

Babiš's numerous companies, primarily under the Agrofert umbrella, function in the Czech Republic and other regional countries, benefiting from millions of euros in national and EU farming and other grants, as well as government deals.

Under Czech law, cabinet members are barred from receiving public aid or contracts. The anti-corruption organization Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, decline government deals, or stay out of public office.

Past Term and Present Intentions

Babiš said he would “follow the laws” if selected as premier, but declined to explain how in advance because the matter was “an highly personal and private affair for me, and journalists will always criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over potential conflicts of interest. He temporarily moved his assets into trust funds, while retaining some influence over them.

A court and the EU executive both determined that this did not suffice. Babiš stated last month that he was once more the sole owner of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but declined to disclose specifics.

Governing Deal and International Consequences

The billionaire populist has signed a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if confirmed, is expected to strengthen the populist movement in the region and could strain western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for international relations, also demanded that the coalition’s programme include a statement on the government’s position on Russia’s war in Ukraine, including a commitment to fulfilling alliance duties.

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