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Andrej Babiš, the self-proclaimed tycoon that won the recent Czech election, has declined to offload his extensive corporate assets, while asserting he will resolve a ethical dilemma that could block him from taking the position of head of government.

Position on Corporate Empire

Babiš, whose ANO party came first in the autumn election but lacked a majority in parliament, stated in a online statement that he would not sell his Agrofert group, which operates in agriculture, food processing, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently stated I will resolve the ethical issue in compliance with Czech and European laws,” the billionaire commented. “This is not like selling a pastry in a bakery.”

President's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will remove ethical conflicts stemming from his business activities before being appointed premier.

The national charter “explicitly requires the head of state to consider the possible emergence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, the presidential administration noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement said, noting that Pavel was ready to designate Babiš as prime minister “immediately” once the matter was settled.

Business Operations and Legal Issues

Babiš's numerous companies, primarily under the Agrofert group, function in the Czech Republic and other central European states, receiving substantial funds in domestic and European farming and other grants, as well as public contracts.

Under Czech law, government ministers cannot receiving state support or contracts. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, refuse public contracts, or not enter public office.

Past Tenure and Present Plans

Babiš said he would “follow the regulations” if appointed as premier, but did not want to detail how in beforehand because the matter was “an extremely sensitive and personal matter for me, and journalists will always question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over possible ethical issues. He placed his holdings into trust funds, while retaining some influence over them.

A court and the European Commission both determined that this did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but refused to disclose specifics.

Governing Deal and International Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if approved, is likely to strengthen the populist movement in the region and could strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for foreign policy, also demanded that the coalition’s programme include a declaration on the official stance on the conflict in Ukraine, including a commitment to meeting Nato obligations.

The head of state has previously said he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has indicated it will satisfy by nominating independent technocrats.