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Andrej Babiš, the self-styled tycoon that secured victory in last month's parliamentary vote, has declined to offload his vast business interests, while insisting he will address a ethical dilemma that could prevent him from assuming the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party came first in the autumn election but did not secure a majority in parliament, declared in a social media post that he will not divest his Agrofert group, which is active in agriculture, food production, and chemical industries.

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

Head of State's Demand

The Czech president, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will remove conflicts of interest stemming from his corporate dealings before assuming the role of prime minister.

The Czech constitution “explicitly requires the president 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 president “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the statement added, noting that Pavel was ready to appoint Babiš as prime minister “immediately” once the issue was resolved.

Business Operations and Legal Issues

Babiš's numerous companies, primarily under the Agrofert umbrella, function in the nation and other central European countries, benefiting from substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The anti-corruption organization Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or not enter government.

Past Term and Present Intentions

Babiš said he would “abide by the laws” if selected as prime minister, but declined to detail how in beforehand because the matter was “an highly personal and private affair for me, and the media will invariably question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over possible ethical issues. He temporarily moved his assets into trust funds, while retaining certain control over them.

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

Coalition Agreement and Foreign Policy Consequences

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the far-right, 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 Green Deal.

The new government, if approved, is expected to strengthen the populist bloc in the region and might challenge backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

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

The president has previously said he would not endorse any cabinet candidates who might doubt the Czech Republic’s international alliances, a condition that the far-right SPD has said it will meet by proposing independent technocrats.