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Andrej Babiš, the self-styled tycoon who secured victory in last month's parliamentary vote, has refused to sell his vast corporate assets, while insisting he will address a ethical dilemma that could prevent him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the October vote but did not secure a parliamentary majority, declared in a social media post that he would not divest his Agrofert group, which operates in agriculture, food production, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have consistently stated I will address the ethical issue in compliance with Czech and European laws,” Babiš commented. “This is different from selling a roll in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, announced that the elderly populist must clarify openly how he will remove ethical conflicts stemming from his corporate dealings before being appointed prime minister.

The national charter “clearly mandates the president to take into account the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement said, stating that Pavel was ready to designate Babiš as premier “without delay” once the issue was resolved.

Business Operations and Legal Issues

Babiš's several hundred companies, primarily under the Agrofert umbrella, operate in the nation and other central European countries, receiving millions of euros in national and EU farming and other subsidies, as well as government deals.

Under national legislation, cabinet members cannot receiving public aid or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse government deals, or stay out of government.

Past Term and Current Intentions

Babiš said he would “follow the regulations” if appointed as premier, but declined to explain how in advance because the matter was “an highly personal and private affair for me, and the media will invariably question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over possible ethical issues. He temporarily moved his assets into trust funds, while keeping certain control over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš confirmed recently that he was again the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to reveal details.

Governing Agreement and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated 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 likely to bolster the populist movement in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for international relations, also demanded that the government agenda add a declaration on the government’s position on the conflict in Ukraine, with a pledge to meeting alliance duties.

The head of state has previously stated he would not approve any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has said it will satisfy by proposing independent technocrats.