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Andrej Babiš, the self-styled tycoon that secured victory in 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 emerged victorious in the autumn vote but did not secure a parliamentary majority, declared in a online statement that he will not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“I have consistently stated I will not sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with national and EU regulations,” the billionaire remarked. “This is not like selling a roll in a bakeshop.”

President's Demand

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

The national charter “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, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement said, noting that Pavel was ready to designate Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, primarily under the Agrofert group, function in the Czech Republic and other central European countries, benefiting from millions of euros in domestic and European agricultural and other grants, as well as public contracts.

Under Czech law, cabinet members are barred from receiving public aid or agreements. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline public contracts, or not enter public office.

Previous Tenure and Present Intentions

Babiš affirmed he would “follow the laws” if appointed as premier, but declined to explain how in advance 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 premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential conflicts of interest. He temporarily moved his assets into trust funds, while keeping some influence over them.

A court and the European Commission both ruled that this was insufficient. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but refused to disclose details.

Governing Agreement and International Consequences

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

The incoming administration, if approved, is expected to strengthen the populist bloc in the region and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for international relations, also requested that the government agenda include a statement on the government’s position on the conflict in Ukraine, with a commitment to meeting Nato obligations.

The president has previously stated he would not endorse any ministerial nominees who might question the nation's EU and Nato commitments, a condition that the far-right SPD has said it will satisfy by proposing independent technocrats.