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Andrej Babiš, the self-styled tycoon who won last month's parliamentary vote, has refused to sell his extensive business interests, while insisting he will resolve a ethical dilemma that could block him from assuming the position of head of government.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn vote but did not secure a majority in parliament, declared in a online statement that he would not sell his Agrofert group, which is active in farming, food processing, and chemical industries.

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

President's Demand

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

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

The head of state “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, stating that Pavel was prepared to designate Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Legal Issues

Babiš's numerous companies, primarily under the Agrofert umbrella, operate in the Czech Republic and other central European countries, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot obtaining public aid or agreements. The ethics watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, refuse public contracts, or stay out of public office.

Previous Tenure and Present Intentions

Babiš said he would “follow the laws” if selected as prime minister, but declined to explain how in advance because the matter was “an extremely sensitive and private affair for me, and the media will invariably criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over possible ethical issues. He temporarily moved his assets into trust funds, while retaining some influence over them.

A court and the European Commission both determined that this did not suffice. Babiš stated recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to disclose details.

Governing Deal and International Implications

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is likely to strengthen the populist bloc in the region and could strain western support for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for international relations, also demanded that the government agenda include a statement on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling alliance duties.

The president has previously stated he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by proposing non-partisan experts.