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

Position on Business Holdings

Babiš, whose ANO party came first in the October election but did not secure a parliamentary majority, stated in a online statement that he will not sell his Agrofert group, which is active in farming, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will address the ethical issue in accordance with Czech and EU regulations,” Babiš commented. “This is different from selling a roll in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, stated that the elderly populist must publicly explain how he will eliminate conflicts of interest stemming from his business activities before being appointed prime minister.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting government ministers, Pavel's office explained.

The head of state “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the statement added, noting that Pavel was prepared to appoint Babiš as premier “immediately” once the matter was resolved.

Business Operations and Legal Concerns

Babiš's numerous firms, mostly under the Agrofert group, function in the Czech Republic and other central European states, receiving substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under national legislation, cabinet members cannot obtaining public aid or contracts. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline government deals, or stay out of government.

Previous Tenure and Present Intentions

Babiš affirmed he would “abide by the laws” if selected as premier, but did not want to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and the media will invariably question me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential ethical issues. He placed his assets into trust funds, while retaining some influence over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to reveal specifics.

Governing Deal and International Implications

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The new government, if approved, is likely to bolster the populist movement in central and eastern Europe and could strain western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for international relations, also demanded that the government agenda add a statement on the government’s position on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The head of state has previously stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s international alliances, a requirement that the ultra-conservative party has indicated it will meet by nominating independent technocrats.