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Andrej Babiš, the self-styled tycoon who won the recent parliamentary vote, has declined to sell his vast business interests, while insisting he will resolve a ethical dilemma that might prevent him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October vote but did not secure a majority in parliament, declared in a social media post that he will not divest his Agrofert group, which is active in agriculture, food processing, and chemicals.

“I have consistently stated I will never sell Agrofert. I have consistently said 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.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will remove ethical conflicts arising from his business activities before being appointed prime minister.

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, stating that Pavel was ready to designate Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the Czech Republic and other regional countries, receiving substantial funds in domestic and European agricultural and other grants, as well as government deals.

Under Czech law, cabinet members cannot receiving public aid or agreements. The ethics watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, refuse government deals, or stay out of public office.

Previous Tenure and Present Plans

Babiš affirmed he would “follow the laws” if selected as premier, but declined to explain how in beforehand because the matter was “an extremely sensitive 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 legal battles and an EU investigation over possible ethical issues. He placed his holdings into trust funds, while keeping some influence over them.

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

Coalition Agreement and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly 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 bolster the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the government agenda include a declaration on the government’s position on the conflict in Ukraine, including a commitment to meeting Nato obligations.

The president has previously stated he would not endorse any cabinet candidates who might question the Czech Republic’s international alliances, a condition that the ultra-conservative party has indicated it will satisfy by nominating independent technocrats.