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

Position on Business Holdings

Babiš, whose political movement came first in the autumn election but did not secure a parliamentary majority, stated in a social media post that he will not sell his Agrofert group, which is active in farming, food production, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently said I will address the conflict of interest in accordance with national and European laws,” the billionaire remarked. “This is different from selling a roll in a bakery.”

President's Requirement

The Czech president, Petr Pavel, stated that the elderly political figure must publicly explain how he will remove conflicts of interest arising from his corporate dealings before assuming the role of premier.

The Czech constitution “explicitly requires the president to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement said, stating that Pavel was prepared to appoint Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, primarily under the Agrofert group, operate in the Czech Republic and other central European states, benefiting from millions of euros in national and EU 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 conflict of interest, Babiš must either divest, refuse government deals, or not enter public office.

Past Tenure and Current Plans

Babiš said he would “abide by the regulations” if appointed as premier, but declined to detail how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will always question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several 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 European Commission both determined that this was insufficient. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to disclose specifics.

Coalition Agreement and Foreign Policy Implications

The wealthy politician has signed 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 campaigned against the EU’s Green Deal.

The new government, if approved, is likely to bolster the populist movement in the region and might challenge western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also demanded that the coalition’s programme add a declaration on the official stance on the conflict in Ukraine, with a commitment to meeting Nato obligations.

The president has earlier stated 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.