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Andrej Babiš, the self-proclaimed tycoon who won last month's parliamentary vote, has declined to offload his extensive business interests, while insisting he will address a ethical dilemma that might block him from assuming the role of prime minister.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn election but did not secure a majority in parliament, stated in a online statement that he will not sell his Agrofert conglomerate, which operates in farming, food processing, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently stated I will address the ethical issue in compliance with national and European laws,” Babiš commented. “This is not like selling a roll in a bakeshop.”

President's Demand

The head of state, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will remove conflicts of interest stemming from his business activities before being appointed premier.

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 appointing cabinet members, the presidential administration explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was ready to designate Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, mostly under the Agrofert group, operate in the nation and other central European states, receiving millions of euros in domestic and European agricultural and other grants, as well as public contracts.

Under Czech law, government ministers cannot obtaining public aid or agreements. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, refuse government deals, or not enter public office.

Previous Term and Present Plans

Babiš said he would “follow the regulations” if selected as premier, but declined to detail how in beforehand because the issue was “an extremely sensitive and personal matter for me, and the media will invariably criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible conflicts of interest. He temporarily moved his assets 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 “taking steps” to prevent a ethical problem, but refused to disclose details.

Governing Agreement and Foreign Policy Implications

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 primarily campaigned against the EU’s Green Deal.

The new government, if confirmed, is likely to bolster the populist movement in the region and might challenge western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for international relations, also requested that the government agenda add a statement on the official stance on Russia’s war in Ukraine, including a commitment to fulfilling alliance duties.

The head of state has earlier stated he would not approve any cabinet candidates who might question the nation's EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by proposing non-partisan experts.