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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 resolve a ethical dilemma that might prevent him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the October election but did not secure a majority in parliament, declared in a social media post that he will not divest his Agrofert conglomerate, which operates in farming, food production, and chemicals.

“I have repeatedly said I will not sell Agrofert. I have consistently said I will address the ethical issue in compliance with national and European laws,” Babiš commented. “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 political figure must clarify openly how he will eliminate conflicts of interest arising from his corporate dealings before being appointed prime minister.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was ready to appoint Babiš as prime minister “immediately” once the issue was resolved.

Business Operations and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert group, function in the Czech Republic and other central European states, receiving millions of euros in domestic and European agricultural and other grants, as well as public contracts.

Under Czech law, government ministers are barred from receiving public aid or contracts. The anti-corruption watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline public contracts, or not enter public office.

Past Term and Current Plans

Babiš said he would “follow the regulations” if appointed as premier, but declined to detail how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will always criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over potential ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping some influence over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but refused to reveal specifics.

Governing Agreement and Foreign Policy Consequences

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for 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 confirmed, is likely to bolster the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – although Babiš has contacted 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 Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.

The head of state has earlier stated he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by nominating independent technocrats.