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Andrej Babiš, the self-styled tycoon that won the recent parliamentary vote, has refused to sell his vast business interests, while asserting he will resolve a ethical dilemma that could prevent him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the October vote but lacked a majority in parliament, declared in a social media post that he would not sell his Agrofert group, which is active in farming, food production, and chemical industries.

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

President's Demand

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove conflicts of interest arising from his business activities before being appointed prime minister.

The national charter “explicitly requires the president to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, Pavel's office explained.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement added, stating that Pavel was prepared to appoint Babiš as prime minister “immediately” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, primarily 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 public contracts.

Under Czech law, government ministers cannot receiving public aid or agreements. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse government deals, or not enter government.

Past Tenure and Present Intentions

Babiš affirmed he would “follow the laws” if appointed as prime minister, but did not want to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will invariably criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over possible ethical issues. 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 recently that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but refused to reveal specifics.

Governing Deal and International Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if approved, is expected to strengthen the populist movement in central and eastern Europe and could challenge western support for Ukraine – although Babiš has called Ukraine’s leader, 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 include a statement on the government’s position on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.

The president has earlier stated he would not approve any cabinet candidates who might question the nation's international alliances, a requirement that the far-right SPD has said it will satisfy by nominating non-partisan experts.