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Andrej Babiš, the self-styled tycoon who won the recent Czech election, has declined to offload his extensive corporate assets, while insisting he will address a ethical dilemma that could block him from assuming the position of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October vote but lacked a parliamentary majority, stated in a online statement that he would not sell his Agrofert conglomerate, which operates in farming, food production, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly said I will address the ethical issue in accordance with national and European laws,” Babiš remarked. “This is not like selling a pastry in a bakery.”

President's Demand

The head of state, 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 head of state to take into account the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to designate Babiš as premier “immediately” once the matter was resolved.

Business Operations and Legal Concerns

Babiš's several hundred companies, mostly under the Agrofert group, operate in the Czech Republic and other central European states, benefiting from substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members are barred from obtaining state support or contracts. The ethics watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, decline public contracts, or stay out of public office.

Past Tenure and Present Intentions

Babiš said he would “abide by the laws” if selected as premier, but declined to explain how in advance because the matter was “an highly personal and private affair for me, and the media will always criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš confirmed recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but refused to disclose specifics.

Coalition Agreement and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement 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 opposed the EU’s Green Deal.

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

Pavel, who as president has a role for foreign policy, also demanded that the government agenda add a statement on the official stance on the conflict in Ukraine, including a commitment to fulfilling Nato obligations.

The president has earlier said he would not approve any cabinet candidates who might question the nation's EU and Nato commitments, a requirement that the far-right SPD has indicated it will satisfy by nominating non-partisan experts.