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Andrej Babiš, the self-styled tycoon who won the recent Czech election, has refused to sell his extensive corporate assets, while asserting he will resolve a ethical dilemma that could block him from taking the role of head of government.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn vote but did not secure a majority in parliament, declared in a online statement that he would not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

“I have consistently said I will not sell Agrofert. I have repeatedly said I will resolve the conflict of interest 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, stated that the elderly political figure must clarify openly how he will remove ethical conflicts arising from his business activities before assuming the role of premier.

The Czech constitution “explicitly requires the president to consider the potential occurrence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office noted.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, noting that Pavel was ready to designate Babiš as premier “immediately” once the matter was settled.

Business Operations and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert umbrella, operate in the nation and other central European states, benefiting from substantial funds in national and EU farming and other subsidies, as well as government deals.

Under national legislation, government ministers are barred from obtaining public aid or contracts. The anti-corruption organization Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline public contracts, or not enter government.

Previous Term and Present Intentions

Babiš said he would “follow the regulations” if selected as prime minister, but did not want to detail how in advance because the matter was “an extremely sensitive and personal matter for me, and the media will always question me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over possible conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A judicial body 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 prevent a conflict of interest, but refused to disclose details.

Governing Deal and International Consequences

The wealthy politician has signed a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is expected to bolster the populist movement in central and eastern Europe and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for foreign policy, also demanded that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has earlier stated he would not approve any ministerial nominees 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.