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

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn election but lacked a majority in parliament, declared in a social media post that he will not divest his Agrofert group, which operates in farming, food production, and chemicals.

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

President's Requirement

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

The Czech constitution “clearly mandates the head of state to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was ready to appoint Babiš as prime minister “immediately” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred firms, mostly under the Agrofert group, operate in the Czech Republic and other central European countries, benefiting from millions of euros in national and EU agricultural and other grants, as well as government deals.

Under national legislation, cabinet members are barred from receiving state support or contracts. The anti-corruption watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either sell, refuse government deals, or stay out of government.

Past Tenure and Current Intentions

Babiš affirmed he would “follow the regulations” if selected as prime minister, but did not want to explain how in advance because the matter was “an extremely sensitive and private affair for me, and the media will always criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over possible ethical issues. He placed his assets into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both ruled that this did not suffice. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but declined to reveal details.

Governing Deal and International Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The new government, if confirmed, is expected to strengthen the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for foreign policy, also requested that the government agenda include a statement on the official stance on Russia’s war in Ukraine, with a pledge to fulfilling Nato obligations.

The head of state has previously said he would not endorse any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will meet by proposing independent technocrats.