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Andrej Babiš, the self-proclaimed tycoon that won last month's parliamentary vote, has declined to offload his extensive corporate assets, while insisting he will resolve a ethical dilemma that might block him from assuming the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but lacked a parliamentary majority, stated in a social media post that he will not divest his Agrofert group, which is active in farming, food processing, and chemicals.

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

President's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will remove ethical conflicts stemming from his business activities before being appointed prime minister.

The national charter “clearly mandates the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when appointing cabinet members, Pavel's office noted.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was ready to designate Babiš as prime minister “immediately” once the matter was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred firms, mostly under the Agrofert group, operate in the Czech Republic and other central European states, receiving substantial funds in domestic and European agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers cannot receiving public aid or contracts. The anti-corruption organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, decline public contracts, or stay out of government.

Past Term and Present Intentions

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

During his first term as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential ethical issues. He placed his holdings into fiduciary arrangements, while keeping some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to reveal specifics.

Coalition Agreement and Foreign Policy Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

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

Pavel, who as head of state has a role for foreign policy, also demanded that the government agenda include a statement on the government’s position on the conflict in Ukraine, with a commitment to meeting Nato obligations.

The president has previously said he would not endorse any ministerial nominees who might question the nation's international alliances, a condition that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.