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

Stance on Corporate Empire

Babiš, whose ANO party came first in the October election but lacked a majority in parliament, stated in a social media post that he will not sell his Agrofert conglomerate, which is active in farming, food production, and chemical industries.

“I have consistently stated I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with Czech and European laws,” the billionaire commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the elderly populist must publicly explain how he will remove conflicts of interest arising from his business activities before being appointed premier.

The Czech constitution “explicitly requires the president to consider 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 “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the announcement added, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the matter was settled.

Business Operations and Legal Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, function in the Czech Republic and other regional states, receiving substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, cabinet members cannot obtaining state support or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or stay out of government.

Past Term and Current Intentions

Babiš said he would “abide by the regulations” if selected as premier, but did not want to detail how in advance because the matter was “an highly personal and private affair for me, and the media will always question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over potential ethical issues. He placed his assets into fiduciary arrangements, while retaining certain control over them.

A court and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to disclose details.

Coalition Deal and Foreign Policy Implications

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if approved, is likely to bolster the populist bloc in central and eastern Europe and could strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for international relations, also requested that the coalition’s programme include a statement on the official stance on the conflict in Ukraine, including a commitment to meeting alliance duties.

The president has earlier stated he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has said it will meet by proposing non-partisan experts.