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Andrej Babiš, the self-styled tycoon who secured victory in last month's parliamentary vote, has refused to sell his vast business interests, while insisting he will resolve a ethical dilemma that could prevent him from taking the position of head of government.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the October vote but did not secure a parliamentary majority, stated in a online statement that he will not divest his Agrofert group, which operates in agriculture, food production, and chemicals.

“I have repeatedly said I will not sell Agrofert. I have consistently stated I will resolve the ethical issue in compliance with Czech and EU regulations,” the billionaire remarked. “This is not like selling a roll in a bakery.”

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 conflicts of interest stemming from his corporate dealings before being appointed premier.

The national charter “clearly mandates the head of state to consider the possible emergence of a ethical issue and the ways to address it” when appointing cabinet members, the presidential administration 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 premier “without delay” once the issue was resolved.

Business Operations and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the Czech Republic and other central European countries, benefiting from substantial funds in national and EU agricultural and other grants, as well as government deals.

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

Past Term and Current Plans

Babiš affirmed he would “follow the laws” if appointed as premier, but did not want to explain how in advance because the issue was “an extremely sensitive and private affair for me, and journalists will always question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over potential ethical issues. He temporarily moved his holdings into trust funds, while retaining some influence over them.

A court and the European Commission both determined that this did not suffice. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but refused to reveal details.

Coalition Agreement and International Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The new government, if confirmed, is likely to bolster the populist bloc in central and eastern Europe and could strain western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for foreign policy, also demanded that the government agenda add a declaration on the government’s position on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.

The head of state has earlier stated he would not approve any cabinet candidates who might doubt the Czech Republic’s international alliances, a requirement that the ultra-conservative party has indicated it will satisfy by nominating non-partisan experts.