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Andrej Babiš, the self-styled tycoon who won last month's parliamentary vote, has declined to sell his extensive corporate assets, while asserting he will resolve a ethical dilemma that could block him from assuming the role of prime minister.

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the October election but lacked a majority in parliament, stated in a social media post that he will not sell his Agrofert conglomerate, which operates in farming, food processing, and chemicals.

“I have repeatedly said I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with Czech and EU regulations,” Babiš remarked. “This is different from selling a pastry in a bakeshop.”

President's Demand

The head of state, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will remove ethical conflicts stemming from his business activities before assuming the role of prime minister.

The Czech constitution “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, Pavel's office explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement said, stating that Pavel was prepared to appoint Babiš as premier “immediately” once the matter was settled.

Business Operations and Legal Issues

Babiš's several hundred firms, mostly under the Agrofert group, operate in the Czech Republic and other central European states, benefiting from substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot obtaining public aid or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or stay out of public office.

Past Tenure and Current Intentions

Babiš said he would “abide by the regulations” if selected as prime minister, but did not want to detail how in advance because the issue was “an highly personal and personal matter for me, and the media will invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over potential conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but declined to reveal details.

Governing Deal and International Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if confirmed, is expected to bolster the populist bloc in the region and might challenge backing from Western nations 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 international relations, also demanded that the government agenda include a statement on the official stance on the conflict in Ukraine, including a commitment to meeting alliance duties.

The president has previously stated he would not endorse any cabinet candidates who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has said it will meet by nominating independent technocrats.