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Andrej Babiš, the self-styled tycoon who secured victory in last month's Czech election, has refused to offload his vast corporate assets, while insisting he will address a ethical dilemma that could prevent him from assuming the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a parliamentary majority, declared in a social media post that he would not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemicals.

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

Head of State's Demand

The head of state, Petr Pavel, announced 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 national charter “clearly mandates the head of state to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting cabinet members, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the announcement said, noting that Pavel was prepared to designate Babiš as premier “without delay” once the issue was settled.

Business Operations and Regulatory Issues

Babiš's numerous companies, mostly under the Agrofert group, operate in the Czech Republic and other regional countries, receiving substantial funds in domestic and European agricultural and other grants, as well as public contracts.

Under national legislation, government ministers are barred from receiving state support or agreements. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or stay out of public office.

Previous Term and Current Plans

Babiš affirmed he would “abide by the regulations” if selected as premier, but declined to explain how in advance because the matter was “an highly personal and private affair for me, and journalists will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over possible conflicts of interest. He temporarily moved his holdings into trust funds, while keeping certain control over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš stated last month that he was again the sole owner of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but refused to reveal specifics.

Coalition Deal and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian 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 likely to bolster the populist bloc in the region and could strain 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 president shares responsibility for foreign policy, also requested that the government agenda include a declaration on the government’s position on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The head of state has earlier said he would not endorse any cabinet candidates who might doubt the nation's international alliances, a condition that the ultra-conservative party has said it will satisfy by proposing non-partisan experts.