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Andrej Babiš, the self-proclaimed tycoon that won the recent parliamentary vote, has refused to offload his vast corporate assets, while insisting he will address a ethical dilemma that could prevent him from taking the position of head of government.

Stance on Corporate Empire

Babiš, whose ANO party came first in the autumn election but lacked a majority in parliament, stated in a social media post that he would not divest his Agrofert group, which is active in agriculture, food processing, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with national and EU regulations,” the billionaire remarked. “This is not like selling a roll in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will eliminate conflicts of interest arising from his business activities before assuming the role of prime minister.

The Czech constitution “clearly mandates the president to take into account the potential occurrence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, the presidential administration explained.

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

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, operate in the Czech Republic and other central European states, receiving millions of euros in national and EU farming and other subsidies, as well as public contracts.

Under Czech law, cabinet members cannot receiving public aid or contracts. The anti-corruption organization Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, decline government deals, or not enter government.

Previous Tenure and Present Plans

Babiš said he would “abide by the laws” if appointed as premier, but did not want to detail how in beforehand because the matter was “an highly personal and private affair for me, and journalists will invariably question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over potential ethical issues. He placed his assets into fiduciary arrangements, while keeping certain control over them.

A judicial body and the EU executive 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 “implementing measures” to prevent a ethical problem, but refused to disclose details.

Governing Deal and Foreign Policy Consequences

The wealthy politician has signed a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly 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 central and eastern Europe and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state 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, including a pledge to meeting alliance duties.

The head of state has previously stated he would not endorse any ministerial nominees who might question the nation's international alliances, a condition that the far-right SPD has indicated it will satisfy by proposing non-partisan experts.