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Andrej Babiš, the self-styled tycoon who won the recent parliamentary vote, has declined to sell his vast corporate assets, while insisting he will resolve a ethical dilemma that could block him from assuming the role of head of government.

Stance on Corporate Empire

Babiš, whose political movement came first in the October vote but did not secure a majority in parliament, declared in a social media post that he would not divest his Agrofert conglomerate, which is active in farming, food production, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently stated I will address the conflict of interest in compliance with national and European laws,” Babiš commented. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the elderly political figure must publicly explain how he will eliminate conflicts of interest stemming from his corporate dealings before being appointed premier.

The national charter “explicitly requires the president to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, Pavel's office explained.

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

Business Operations and Legal Concerns

Babiš's several hundred companies, mostly under the Agrofert group, operate in the Czech Republic and other regional states, receiving millions of euros in national and EU agricultural and other subsidies, as well as government deals.

Under national legislation, government ministers are barred from obtaining state support or contracts. The ethics organization Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or not enter public office.

Past Term and Current Plans

Babiš affirmed he would “abide by the regulations” if selected as premier, but declined to detail how in advance because the matter was “an extremely sensitive and private affair for me, and journalists will always criticise me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over possible conflicts of interest. He placed his holdings into trust funds, while keeping certain control over them.

A court and the European Commission both ruled that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but refused to reveal specifics.

Governing Agreement and International Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if approved, is expected to strengthen the populist movement in central and eastern Europe 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 head of state has a role for foreign policy, also requested that the government agenda include a statement on the government’s position on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

The president has earlier said he would not endorse any ministerial nominees who might doubt the Czech Republic’s international alliances, a condition that the far-right SPD has said it will satisfy by proposing non-partisan experts.