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

Position on Corporate Empire

Babiš, whose ANO party came first in the October election but lacked a majority in parliament, declared in a online statement that he would not divest his Agrofert group, which operates in agriculture, food processing, and chemicals.

“I have repeatedly said 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 different from selling a roll in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the elderly populist must clarify openly how he will remove ethical conflicts arising from his corporate dealings before being appointed prime minister.

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

The president “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was prepared to appoint Babiš as prime minister “immediately” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous firms, primarily under the Agrofert group, function in the Czech Republic and other central European countries, receiving substantial funds in domestic and European agricultural and other grants, as well as government deals.

Under Czech law, government ministers are barred from obtaining public aid or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, refuse public contracts, or stay out of public office.

Previous Tenure and Current Intentions

Babiš said he would “follow the laws” if selected as prime minister, but did not want to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and the media will invariably 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 conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but declined to reveal specifics.

Governing Agreement and International Implications

The billionaire populist has signed a governing pact 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 primarily opposed the EU’s Green Deal.

The new government, if confirmed, is expected to bolster the populist bloc in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda add a statement on the government’s position on the conflict in Ukraine, including a pledge to fulfilling Nato obligations.

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