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Andrej Babiš, the self-styled tycoon who secured victory in last month's Czech election, has refused to sell his extensive corporate assets, while asserting he will address a ethical dilemma that might block him from taking the role of head of government.

Position on Corporate Empire

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

“I have consistently stated I will never sell Agrofert. I have consistently stated I will address the conflict of interest in accordance with national and European laws,” the billionaire remarked. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the elderly populist must clarify openly how he will remove ethical conflicts stemming from his corporate dealings before assuming the role of prime minister.

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 cabinet members, the presidential administration noted.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was ready to designate Babiš as prime minister “immediately” once the matter was settled.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional states, benefiting from millions of euros in domestic and European agricultural and other grants, as well as government deals.

Under national legislation, government ministers cannot receiving public aid or contracts. The anti-corruption organization Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, refuse government deals, or not enter government.

Past Term and Current Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but declined to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and the media will always question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over possible ethical issues. He temporarily moved his holdings into trust funds, while keeping certain control over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš confirmed last month that he was once more the sole owner of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but declined to reveal details.

Governing Deal and Foreign Policy Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if approved, is likely to strengthen the populist movement in central and eastern Europe and could strain western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for foreign policy, also demanded that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, with a pledge to meeting alliance duties.

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