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Andrej Babiš, the self-proclaimed tycoon who secured victory in the recent Czech election, has refused to sell his vast business interests, while insisting he will resolve a ethical dilemma that could prevent him from taking the role of head of government.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn vote but lacked a parliamentary majority, declared in a online statement that he would not sell his Agrofert conglomerate, which operates in farming, food production, and chemicals.

“I have consistently stated I will not sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with national and EU regulations,” the billionaire remarked. “This is different from selling a pastry in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove ethical conflicts arising from his business activities before assuming the role of prime minister.

The national charter “clearly mandates the president to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, Pavel's office explained.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, noting that Pavel was ready to designate Babiš as prime minister “immediately” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert group, operate in the nation and other regional states, receiving millions of euros in national and EU farming and other grants, as well as public contracts.

Under Czech law, cabinet members are barred from obtaining state support or agreements. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, decline government deals, or stay out of government.

Past Term and Present Plans

Babiš affirmed he would “abide by the laws” if appointed as prime minister, 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 regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A court and the European Commission both determined that this was insufficient. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to disclose specifics.

Coalition Agreement and International Implications

The billionaire populist 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 exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The incoming administration, if approved, is expected to strengthen the populist bloc in the region and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for international relations, also demanded that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, with a commitment to meeting alliance duties.

The president has previously stated he would not endorse any cabinet candidates who might doubt the Czech Republic’s international alliances, a condition that the far-right SPD has said it will satisfy by nominating non-partisan experts.