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Andrej Babiš, the self-styled tycoon that won last month's parliamentary vote, has declined to sell his extensive business interests, while asserting he will resolve a ethical dilemma that might prevent him from assuming the position of head of government.

Position on Corporate Empire

Babiš, whose ANO party came first in the October vote but lacked a parliamentary majority, stated in a social media post that he would not divest his Agrofert group, which is active in farming, food production, and chemicals.

“I have consistently stated I will never sell Agrofert. I have consistently said I will address the ethical issue in accordance with Czech and EU regulations,” the billionaire remarked. “This is different from selling a roll in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will eliminate conflicts of interest arising from his business activities before assuming the role of premier.

The national charter “clearly mandates the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, the presidential administration explained.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement said, 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 group, operate in the nation and other central European countries, benefiting from substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, government ministers are barred from receiving public aid or contracts. The ethics organization Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, decline government deals, or stay out of public office.

Previous Term and Current Plans

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

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible conflicts of interest. He placed his assets into fiduciary arrangements, while retaining certain control over them.

A judicial body and the European Commission both ruled that this was insufficient. Babiš stated last month that he was again the sole owner of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but declined to disclose specifics.

Governing Agreement and Foreign Policy Consequences

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

The new government, if approved, is expected to strengthen the populist bloc in the region 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 president shares responsibility for foreign policy, also demanded 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 earlier said he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has said it will satisfy by proposing non-partisan experts.