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Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent parliamentary vote, has refused to offload his extensive corporate assets, while asserting he will resolve a ethical dilemma that could block him from taking the role of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the October vote but did not secure a parliamentary majority, stated in a social media post that he will not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly said I will address the conflict of interest in compliance with national and European laws,” Babiš remarked. “This is not like selling a roll in a bakeshop.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will remove ethical conflicts arising from his corporate dealings before assuming the role of premier.

The national charter “clearly mandates the president to consider the potential occurrence 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 specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was prepared to designate Babiš as prime minister “immediately” once the matter was settled.

Business Operations and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert group, operate in the Czech Republic and other regional countries, receiving millions of euros in domestic and European agricultural and other grants, as well as public contracts.

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

Past Tenure and Current Plans

Babiš affirmed he would “abide by the laws” if appointed as premier, but did not want to explain how in advance because the issue was “an extremely sensitive and private affair for me, and journalists will always criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible ethical issues. He placed his assets into fiduciary arrangements, while keeping some influence over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but refused to disclose details.

Governing Agreement and International Implications

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if approved, is expected to bolster the populist bloc in the region and could strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for international relations, also demanded that the government agenda add a declaration on the government’s position on Russia’s war in Ukraine, including a commitment to meeting alliance duties.

The president has earlier stated he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a condition that the far-right SPD has indicated it will meet by nominating independent technocrats.