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Andrej Babiš, the self-styled tycoon that secured victory in the recent Czech election, has declined to sell his extensive business interests, while insisting he will resolve a ethical dilemma that could prevent him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn election but lacked a parliamentary majority, declared in a social media post that he would not sell his Agrofert conglomerate, which operates in farming, food production, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in compliance with national and EU regulations,” the billionaire commented. “This is different from selling a pastry in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, stated that the elderly political figure must clarify openly how he will eliminate ethical conflicts stemming from his business activities before being appointed prime minister.

The national charter “clearly mandates the head of state to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration noted.

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

Corporate Activities and Legal Issues

Babiš's several hundred firms, mostly under the Agrofert umbrella, function in the nation and other central European states, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as public contracts.

Under Czech law, cabinet members 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 public contracts, or not enter government.

Past Tenure and Current Plans

Babiš affirmed he would “follow the regulations” if selected as premier, but declined to explain how in advance because the issue was “an highly personal and private affair for me, and the media will always question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping certain control over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš stated last month 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 reveal specifics.

Coalition Agreement and International Consequences

The billionaire populist has signed a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if confirmed, is expected to strengthen the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme add a statement on the official stance on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has earlier stated he would not approve any cabinet candidates who might question the nation's international alliances, a requirement that the far-right SPD has indicated it will meet by nominating independent technocrats.