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Andrej Babiš, the self-proclaimed tycoon who won the recent parliamentary vote, has declined to offload his extensive corporate assets, while insisting he will address a ethical dilemma that might prevent him from taking the role of head of government.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn vote but lacked a parliamentary majority, declared in a online statement that he would not divest his Agrofert group, which is active in farming, food production, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in accordance with national and European laws,” the billionaire remarked. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate conflicts of interest arising from his corporate dealings before assuming the role of premier.

The national charter “explicitly requires the head of state to consider the potential occurrence of a conflict of interest and the ways to address it” when appointing government ministers, the presidential administration noted.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the statement added, noting that Pavel was ready to designate Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Legal Concerns

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

Under national legislation, cabinet members cannot obtaining public aid or contracts. The anti-corruption organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or not enter government.

Previous Term and Current Plans

Babiš affirmed he would “follow the laws” if appointed as prime minister, but declined to detail how in beforehand because the issue was “an extremely sensitive and personal matter for me, and the media will invariably criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over potential conflicts of interest. He placed his assets into fiduciary arrangements, while keeping some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but declined to reveal specifics.

Governing Agreement and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to strengthen the populist bloc in central and eastern Europe and could strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm 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 Russia’s war in Ukraine, with a commitment to fulfilling alliance duties.

The president has previously said he would not approve any cabinet candidates who might question the nation's international alliances, a requirement that the ultra-conservative party has said it will satisfy by proposing non-partisan experts.