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Andrej Babiš, the self-proclaimed tycoon that won last month's Czech election, has declined to offload his vast business interests, while asserting he will resolve a ethical dilemma that might prevent him from assuming the position of prime minister.

Position on Business Holdings

Babiš, whose political movement came first in the October election but lacked a parliamentary majority, declared in a online statement that he will not divest his Agrofert group, which is active in agriculture, food production, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly said I will address the conflict of interest in compliance with Czech and EU regulations,” Babiš remarked. “This is not like selling a roll in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the elderly political figure must clarify openly how he will remove conflicts of interest arising from his business activities before assuming the role of prime minister.

The national charter “explicitly requires the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration noted.

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

Corporate Activities and Legal Issues

Babiš's numerous companies, primarily under the Agrofert umbrella, function in the nation and other central European states, receiving millions of euros in domestic and European agricultural and other subsidies, as well as public contracts.

Under Czech law, government ministers cannot obtaining state support or contracts. The anti-corruption organization Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, refuse public contracts, or stay out of government.

Past Term and Current Intentions

Babiš said he would “follow the regulations” if appointed as prime minister, but did not want to detail how in advance because the issue was “an highly personal and private affair for me, and journalists will always question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential conflicts of interest. He placed his assets into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš stated last month that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but refused to reveal details.

Governing Agreement and International Implications

The wealthy politician has signed a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The new government, if approved, is expected to bolster the populist bloc in central and eastern Europe and could challenge western support for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the coalition’s programme add a statement on the official stance on the conflict in Ukraine, with a commitment to meeting alliance duties.

The head of state has earlier said he would not endorse any cabinet candidates who might doubt the nation's EU and Nato commitments, a requirement that the ultra-conservative party has said it will meet by proposing independent technocrats.