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Andrej Babiš, the self-proclaimed tycoon who won the recent parliamentary vote, has refused to offload his extensive business interests, while insisting he will resolve a ethical dilemma that could prevent him from taking the position of head of government.

Position on Corporate Empire

Babiš, whose ANO party came first in the autumn vote but did not secure a parliamentary majority, declared in a social media post that he will not divest his Agrofert group, which operates in agriculture, food production, and chemicals.

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

Head of State's Requirement

The Czech president, Petr Pavel, stated that the elderly political figure must publicly explain how he will eliminate ethical conflicts arising from his business activities before assuming the role of prime minister.

The national charter “explicitly requires the president to take into account 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 “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, stating that Pavel was prepared to designate Babiš as premier “without delay” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, function in the Czech Republic and other central European countries, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as public contracts.

Under Czech law, cabinet members are barred from receiving state support or agreements. The anti-corruption organization Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, decline government deals, or stay out of government.

Previous Term and Current Intentions

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

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over potential conflicts of interest. He placed his assets into trust funds, while retaining some influence over them.

A judicial body and the European Commission both ruled that this was insufficient. Babiš stated recently that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but refused to reveal specifics.

Governing Agreement and International Implications

The wealthy politician has signed a governing pact with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if approved, is expected to bolster the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also requested that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, with a commitment to meeting Nato obligations.

The head of state has previously stated he would not endorse any cabinet candidates who might question the Czech Republic’s international alliances, a requirement that the far-right SPD has said it will satisfy by proposing non-partisan experts.