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Andrej Babiš, the self-proclaimed tycoon that won last month's Czech election, has refused to offload his vast corporate assets, while insisting he will resolve a ethical dilemma that might block him from assuming the position of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the October election but did not secure a majority in parliament, declared in a online statement that he would not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently stated I will address the conflict of interest in compliance with national and EU regulations,” the billionaire commented. “This is not like 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 arising from his corporate dealings before assuming the role of premier.

The national charter “explicitly requires the president to take into account the potential occurrence of a ethical issue and the ways to address it” when appointing government ministers, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the announcement added, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Regulatory Issues

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

Under Czech law, cabinet members cannot obtaining public aid or contracts. 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.

Past Tenure and Present Plans

Babiš affirmed he would “follow the regulations” if appointed as prime minister, but declined to explain how in beforehand because the issue was “an highly personal and personal matter for me, and journalists will invariably criticise me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but declined to disclose details.

Governing Deal and Foreign Policy Implications

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if confirmed, is expected to bolster the populist bloc in the region and might strain western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for foreign policy, also demanded that the coalition’s programme include a statement on the official stance on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The president has earlier stated he would not endorse any cabinet candidates who might doubt the nation's international alliances, a condition that the far-right SPD has indicated it will satisfy by proposing independent technocrats.