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Andrej Babiš, the self-styled tycoon who secured victory in the recent parliamentary vote, has refused to offload his vast business interests, while insisting he will address a ethical dilemma that could block him from assuming the role of head of government.

Stance on Business Holdings

Babiš, whose ANO party came first in the autumn election but did not secure a parliamentary majority, declared in a online statement that he would not divest his Agrofert conglomerate, which operates in agriculture, food production, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with Czech and European laws,” Babiš commented. “This is different from selling a roll in a bakery.”

Head of State's Demand

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

The Czech constitution “clearly mandates the president to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, the presidential administration explained.

The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement said, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Legal Issues

Babiš's several hundred companies, mostly under the Agrofert group, operate in the Czech Republic and other central European countries, benefiting from millions of euros in domestic and European farming and other grants, as well as public contracts.

Under Czech law, government ministers are barred from obtaining public aid or agreements. The ethics organization Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or stay out of public office.

Past Term and Present 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 first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible ethical issues. He placed his assets into fiduciary arrangements, while keeping some influence over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš confirmed recently that he was again the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to disclose details.

Governing Agreement and International Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated 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 bolster the populist movement in the region and might strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him 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 statement on the official stance on Russia’s war in Ukraine, including a commitment to fulfilling alliance duties.

The president has previously stated he would not endorse any cabinet candidates who might doubt the Czech Republic’s international alliances, a requirement that the ultra-conservative party has said it will meet by proposing non-partisan experts.