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Andrej Babiš, the self-styled tycoon who secured victory in last month's Czech election, has refused to sell his extensive corporate assets, while insisting he will resolve a ethical dilemma that might prevent him from taking the position of head of government.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the October election but lacked a majority in parliament, stated in a online statement that he will not sell his Agrofert group, which operates in agriculture, food processing, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with Czech and European laws,” the billionaire commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will eliminate conflicts of interest arising from his corporate dealings before assuming the role of prime minister.

The Czech constitution “clearly mandates the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, the presidential administration explained.

The president “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the statement said, noting that Pavel was prepared to appoint Babiš as prime minister “immediately” once the matter was resolved.

Business Operations and Legal Issues

Babiš's several hundred companies, primarily under the Agrofert group, operate in the Czech Republic and other regional countries, receiving substantial funds in domestic and European agricultural and other subsidies, as well as public contracts.

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The anti-corruption watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline public contracts, or stay out of government.

Past Term and Present Intentions

Babiš said he would “abide by the laws” if appointed as premier, but did not want to detail how in advance because the matter was “an extremely sensitive and private affair for me, and the media will always question me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over potential ethical issues. He temporarily moved his assets into trust funds, while keeping some influence over them.

A court and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but refused to reveal specifics.

Coalition Deal and Foreign Policy Implications

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to strengthen the populist movement in the region and could challenge western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the government agenda add a declaration on the official stance on the conflict in Ukraine, with a commitment to meeting Nato obligations.

The head of state has previously stated he would not endorse any ministerial nominees who might doubt the nation's international alliances, a requirement that the ultra-conservative party has indicated it will satisfy by proposing independent technocrats.