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Andrej Babiš, the self-proclaimed tycoon who won the recent parliamentary vote, has refused to offload his vast corporate assets, while asserting he will resolve a ethical dilemma that might prevent him from taking the position of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the autumn vote but did not secure a parliamentary majority, stated in a social media post that he would not sell 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 ethical issue in compliance with national and European laws,” the billionaire commented. “This is different from selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will eliminate ethical conflicts arising from his corporate dealings before being appointed prime minister.

The Czech constitution “explicitly requires the president to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, stating that Pavel was prepared to designate Babiš as premier “immediately” once the matter was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional countries, benefiting from substantial funds in domestic and European farming and other subsidies, as well as public contracts.

Under Czech law, government ministers cannot obtaining public aid or contracts. The anti-corruption watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either sell, refuse public contracts, or not enter public office.

Past Term and Current Plans

Babiš affirmed he would “abide by the regulations” if selected as prime minister, but declined to explain how in beforehand because the matter was “an extremely sensitive and private affair for me, and journalists will invariably criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while retaining some influence over them.

A judicial body 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 “implementing measures” to prevent a ethical problem, but refused to reveal details.

Coalition Deal and International Implications

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

The incoming administration, if confirmed, is expected to strengthen the populist movement in the region and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for international relations, also requested that the coalition’s programme add a statement on the official stance on the conflict in Ukraine, with 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 EU and Nato commitments, a condition that the ultra-conservative party has said it will meet by nominating independent technocrats.