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Andrej Babiš, the self-styled tycoon who won last month's parliamentary vote, has declined to offload his vast business interests, while insisting he will address a ethical dilemma that could prevent him from assuming the position of prime minister.

Stance on Business Holdings

Babiš, whose ANO party came first in the autumn election but did not secure a majority in parliament, stated in a social media post that he will not divest his Agrofert group, which is active in agriculture, food production, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will resolve the conflict of interest in accordance with national and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will eliminate ethical conflicts stemming from his business activities before assuming the role of prime minister.

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, 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 appoint Babiš as prime minister “without delay” once the issue was settled.

Corporate Activities and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert group, function in the nation and other central European countries, benefiting from substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers are barred from receiving public aid or contracts. 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.

Previous Tenure and Present Intentions

Babiš said he would “follow the laws” if appointed as prime minister, but did not want to detail how in beforehand because the issue was “an extremely sensitive and personal matter for me, and journalists will invariably question me regardless”.

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

A judicial body and the EU executive both ruled that this did not suffice. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to disclose specifics.

Coalition Agreement and International Consequences

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a public vote on leaving 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 strengthen the populist bloc in the region and might challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for international relations, also demanded that the government agenda include a declaration on the official stance on the conflict in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has earlier stated he would not endorse any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has indicated it will satisfy by nominating independent technocrats.