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Andrej Babiš, the self-proclaimed tycoon who won last month's Czech election, has refused to offload his vast business interests, while asserting he will address a ethical dilemma that could block him from taking the role of head of government.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October vote but did not secure a parliamentary majority, stated in a online statement that he would not divest his Agrofert group, which is active in agriculture, food processing, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have consistently said I will resolve the ethical issue in compliance with Czech and EU regulations,” Babiš commented. “This is not like selling a roll in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will eliminate ethical conflicts arising from his corporate dealings before being appointed prime minister.

The Czech constitution “explicitly requires the head of state to take into account the potential occurrence of a conflict of interest and the ways to address it” when appointing government ministers, the presidential administration noted.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement said, stating that Pavel was prepared to designate Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional states, benefiting from millions of euros in national and EU agricultural and other grants, as well as public contracts.

Under national legislation, government ministers are barred from receiving public aid or contracts. The ethics watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, refuse public contracts, or stay out of public office.

Past Tenure and Present Plans

Babiš said he would “follow the laws” if appointed as premier, but declined to detail how in advance because the matter was “an extremely sensitive and private affair for me, and the media will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over possible ethical issues. He placed his holdings into fiduciary arrangements, while keeping some influence over them.

A court and the EU executive both ruled that this did not suffice. Babiš stated last month that he was once more the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but refused to reveal details.

Coalition Agreement and International Implications

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on leaving 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 could challenge western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for foreign policy, also requested that the government agenda include a statement on the official stance on the conflict in Ukraine, with a commitment to meeting alliance duties.

The president has previously stated he would not endorse any cabinet candidates who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has indicated it will satisfy by nominating independent technocrats.