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Andrej Babiš, the self-styled tycoon who secured victory in the recent parliamentary vote, has refused to offload his extensive business interests, while insisting he will resolve a ethical dilemma that could prevent him from taking the position of head of government.

Position on Corporate Empire

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

“I have consistently stated I will not sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with national and European laws,” the billionaire commented. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the elderly political figure must clarify openly how he will remove ethical conflicts arising from his corporate dealings before assuming the role of prime minister.

The Czech constitution “explicitly requires the president to consider the possible emergence of a conflict of interest and the ways to address it” when selecting government ministers, the presidential administration noted.

The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was prepared to designate Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert group, function in the Czech Republic and other central European states, benefiting from substantial funds in national and EU agricultural and other grants, as well as government deals.

Under Czech law, government ministers cannot obtaining public aid or agreements. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, refuse public contracts, or stay out of public office.

Previous Term and Present Plans

Babiš affirmed he would “follow the laws” if selected as prime minister, but did not want to detail how in advance because the issue 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 encountered multiple court cases and an EU investigation over possible ethical issues. He temporarily moved his holdings into trust funds, while keeping certain control over them.

A court 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 insisted he was “implementing measures” to avoid a conflict of interest, but refused to reveal details.

Governing Deal and International Consequences

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if confirmed, is likely to bolster the populist bloc in central and eastern Europe and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for international relations, also requested that the government agenda include a declaration on the official stance on the conflict in Ukraine, including a commitment to fulfilling alliance duties.

The head of state has earlier stated he would not approve any ministerial nominees who might question the nation's EU and Nato commitments, a requirement that the far-right SPD has said it will meet by nominating independent technocrats.