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Andrej Babiš, the self-proclaimed tycoon who secured victory in last month's parliamentary vote, has refused to offload his vast business interests, while insisting he will resolve a ethical dilemma that could prevent him from taking the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but lacked a majority in parliament, declared in a social media post that he will not sell his Agrofert group, which operates in agriculture, food production, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly stated I will resolve the conflict of interest in compliance with Czech and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove conflicts of interest stemming from his business activities before being appointed premier.

The Czech constitution “clearly mandates the head of state to take into account the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, Pavel's office explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, stating that Pavel was ready to appoint Babiš as prime minister “immediately” once the issue was settled.

Business Operations and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert umbrella, function in the Czech Republic and other central European states, benefiting from substantial funds in domestic and European farming and other subsidies, as well as government deals.

Under national legislation, government ministers cannot obtaining state support or agreements. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or not enter government.

Previous Tenure and Present Intentions

Babiš said he would “abide by the regulations” if selected as prime minister, but did not want to explain how in beforehand because the matter was “an extremely sensitive and private affair for me, and the media will always criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.

A court and the European Commission both determined that this was insufficient. Babiš stated last month that he was again the sole owner of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but declined to reveal specifics.

Governing Agreement and Foreign Policy Consequences

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated 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 might strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for foreign policy, also requested that the government agenda add a declaration on the official stance on Russia’s war in Ukraine, including a pledge to fulfilling alliance duties.

The president has previously said he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will satisfy by proposing independent technocrats.