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Andrej Babiš, the self-styled tycoon that won last month's parliamentary vote, has declined to offload his vast business interests, while insisting he will resolve a ethical dilemma that could block him from assuming the position of prime minister.

Stance on Corporate Empire

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

“I have consistently said I will never sell Agrofert. I have consistently stated I will resolve the conflict of interest in accordance with Czech and EU regulations,” the billionaire commented. “This is not like selling a roll in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove ethical conflicts stemming from his business activities before assuming the role of prime minister.

The Czech constitution “explicitly requires the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when selecting cabinet members, Pavel's office explained.

The head of state “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the matter was settled.

Business Operations and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional countries, receiving millions of euros in national and EU farming and other grants, as well as government deals.

Under Czech law, government ministers are barred from receiving public aid or contracts. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse public contracts, or not enter public office.

Past Term and Present Intentions

Babiš affirmed he would “follow the regulations” if appointed as prime minister, but declined to explain how in advance because the matter was “an highly personal and personal matter for me, and journalists will always question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but declined to disclose specifics.

Coalition Deal and International Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if approved, is expected to bolster the populist movement in the region and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme include a statement on the official stance on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

The president has earlier stated he would not endorse any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the far-right SPD has indicated it will satisfy by proposing independent technocrats.