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Andrej Babiš, the self-proclaimed tycoon that won the recent parliamentary vote, has declined to offload his extensive corporate assets, while insisting he will address a ethical dilemma that could block him from taking the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the October vote but did not secure a parliamentary majority, declared in a social media post that he will not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in compliance with Czech and EU regulations,” Babiš commented. “This is not like selling a roll in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will eliminate ethical conflicts arising from his business activities before being appointed premier.

The national charter “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office explained.

The president “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the statement added, stating that Pavel was ready to appoint Babiš as premier “immediately” once the matter was settled.

Business Operations and Legal Concerns

Babiš's several hundred companies, primarily under the Agrofert umbrella, function in the Czech Republic and other central European countries, receiving millions of euros in domestic and European agricultural and other grants, as well as government deals.

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

Past Term and Present Plans

Babiš said he would “follow the laws” if appointed as premier, but did not want to explain how in beforehand because the matter was “an highly personal and private affair for me, and journalists will always criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential conflicts of interest. He placed his assets into trust funds, while keeping certain control over them.

A court and the European Commission both ruled that this did not suffice. Babiš stated recently that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to reveal details.

Coalition Agreement and International Consequences

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, 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 expected to strengthen the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for foreign policy, also requested that the government agenda add a statement on the official stance on Russia’s war in Ukraine, with a pledge to meeting alliance duties.

The president has previously stated he would not endorse any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by nominating non-partisan experts.