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Andrej Babiš, the self-proclaimed tycoon that won the recent parliamentary vote, has declined to sell his extensive business interests, while insisting he will address a ethical dilemma that could prevent him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the autumn election but did not secure a parliamentary majority, declared in a online statement that he will not divest his Agrofert group, which is active in agriculture, food processing, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have consistently stated I will resolve the ethical issue in accordance with Czech and European laws,” the billionaire remarked. “This is not like selling a roll in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts stemming from his business activities before being appointed prime minister.

The national charter “clearly mandates the president to consider the possible emergence of a ethical issue and the ways to address it” when appointing government ministers, the presidential administration noted.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was prepared to designate Babiš as premier “without delay” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, operate in the nation and other regional countries, receiving millions of euros in national and EU agricultural and other subsidies, 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 avoid a ethical breach, Babiš must either sell, decline government deals, or stay out of public office.

Past Term and Present Plans

Babiš said he would “abide by the laws” if appointed as premier, but declined to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and the media will invariably question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over possible conflicts of interest. He placed his assets into fiduciary arrangements, while retaining some influence over them.

A court and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was again the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but declined to reveal specifics.

Coalition Agreement and Foreign Policy Consequences

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if approved, is expected to strengthen the populist movement in the region and could strain backing from Western nations for Ukraine – although Babiš has called 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 declaration on the official stance on the conflict in Ukraine, including a commitment to fulfilling alliance duties.

The head of state has earlier said he would not endorse any cabinet candidates who might doubt the Czech Republic’s international alliances, a requirement that the ultra-conservative party has indicated it will satisfy by nominating non-partisan experts.