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Andrej Babiš, the self-proclaimed tycoon who secured victory in the recent Czech election, has refused to offload his vast corporate assets, while insisting he will address a ethical dilemma that could prevent him from taking the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the October vote but lacked a parliamentary majority, stated in a online statement that he will not sell his Agrofert group, which is active in farming, food processing, and chemicals.

“I have consistently stated I will never sell Agrofert. I have repeatedly said I will address the ethical issue in accordance with Czech and EU regulations,” Babiš commented. “This is different from selling a roll in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will remove conflicts of interest stemming from his business activities before assuming the role of premier.

The Czech constitution “explicitly requires the head of state to take into account the possible emergence of a conflict of interest and the ways to address it” when selecting cabinet members, Pavel's office explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the statement added, stating that Pavel was prepared to appoint Babiš as prime minister “immediately” once the issue was settled.

Corporate Activities and Regulatory Issues

Babiš's numerous firms, primarily under the Agrofert group, operate in the nation and other central European states, benefiting from substantial funds in national and EU farming and other grants, as well as government deals.

Under Czech law, government ministers cannot receiving state support or agreements. The ethics watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, refuse public contracts, or stay out of public office.

Previous Tenure and Current Intentions

Babiš affirmed he would “abide by the laws” if selected as premier, but declined to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will always criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over possible ethical issues. He temporarily moved his holdings into fiduciary arrangements, 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 once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but refused to disclose specifics.

Governing Deal and Foreign Policy Consequences

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if confirmed, is expected to strengthen the populist bloc in the region and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for foreign policy, also demanded that the coalition’s programme include a statement on the government’s position on Russia’s war in Ukraine, with a pledge to fulfilling Nato obligations.

The president has previously said he would not endorse any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.