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Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent Czech election, has refused to offload his vast corporate assets, while asserting he will resolve a ethical dilemma that could prevent him from assuming the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party came first in the autumn vote but did not secure a majority in parliament, stated in a social media post that he would not sell his Agrofert conglomerate, which operates in farming, food production, and chemicals.

“I have consistently stated I will not sell Agrofert. I have repeatedly said I will resolve the ethical issue in accordance with national and European laws,” Babiš remarked. “This is different from selling a pastry in a bakery.”

Head of State's Demand

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

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

The president “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement said, noting that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Legal Concerns

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

Under Czech law, government ministers cannot obtaining state support or agreements. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, decline public contracts, or not enter public office.

Previous Tenure and Current Plans

Babiš affirmed he would “abide by the regulations” if appointed as premier, but did not want to explain how in beforehand because the matter was “an highly personal and personal matter for me, and the media will always question me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential 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 was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but declined to reveal details.

Governing Deal and International Implications

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if approved, is expected to strengthen the populist bloc in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the coalition’s programme include a declaration on the government’s position on the conflict in Ukraine, with a commitment to meeting alliance duties.

The president has previously said he would not approve any ministerial nominees who might question the nation's international alliances, a condition that the far-right SPD has said it will satisfy by proposing non-partisan experts.