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Andrej Babiš, the self-proclaimed tycoon who secured victory in last month's Czech election, has declined to sell his vast corporate assets, while insisting he will resolve a ethical dilemma that might block him from taking the position of head of government.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn election but did not secure a majority in parliament, declared in a social media post that he would not divest his Agrofert group, which is active in farming, food production, and chemical industries.

“I have consistently said I will never sell Agrofert. I have consistently stated I will address the conflict of interest in compliance with national and European laws,” Babiš commented. “This is different from selling a roll in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, stated that the elderly political figure must publicly explain how he will remove conflicts of interest arising from his corporate dealings before assuming the role of premier.

The Czech constitution “clearly mandates the president to consider the possible emergence of a ethical issue and the ways to address it” when appointing cabinet members, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, noting that Pavel was prepared to designate Babiš as premier “without delay” once the matter was settled.

Business Operations and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert umbrella, operate in the Czech Republic and other regional states, benefiting from substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members are barred from receiving state support or contracts. The ethics organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, refuse public contracts, or stay out of government.

Past Tenure and Present Plans

Babiš said he would “abide by the laws” if appointed as prime minister, but did not want to detail how in advance because the matter was “an extremely sensitive and private affair for me, and the media will invariably criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over possible conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

A court and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but refused to disclose details.

Coalition Agreement and International Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if approved, is likely to bolster the populist bloc in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for international relations, also requested that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, including a commitment to fulfilling alliance duties.

The head of state has previously said he would not approve any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the far-right SPD has indicated it will satisfy by nominating non-partisan experts.