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Andrej Babiš, the self-styled tycoon that won the recent Czech election, has declined to sell his extensive corporate assets, while insisting he will address a ethical dilemma that might prevent him from assuming the position of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn vote but lacked a parliamentary majority, declared in a online statement that he would not divest his Agrofert conglomerate, which is active in farming, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have consistently stated I will address the ethical issue in compliance with national and European laws,” Babiš commented. “This is not like selling a roll in a bakery.”

President's Demand

The head of state, Petr Pavel, stated that the elderly political figure must publicly explain how he will eliminate ethical conflicts stemming from his business activities before assuming the role of premier.

The Czech constitution “clearly mandates the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, the presidential administration explained.

The head of state “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 premier “without delay” once the matter was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional countries, benefiting from millions of euros in national and EU farming and other grants, as well as government deals.

Under Czech law, government ministers cannot obtaining public aid or agreements. The ethics organization Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, decline government deals, or stay out of government.

Previous Tenure and Present Intentions

Babiš said he would “follow the regulations” if selected as prime minister, but did not want to detail how in advance because the issue was “an extremely sensitive and personal matter for me, and the media will always question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over potential conflicts of interest. He placed his holdings into fiduciary arrangements, while keeping certain control over them.

A court and the European Commission both determined that this did not suffice. Babiš confirmed last month that he was once more the sole owner of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but refused to disclose specifics.

Coalition Agreement and International Implications

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

The incoming administration, if approved, is likely to bolster the populist bloc in the region and might challenge western support for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, including a commitment to meeting Nato obligations.

The president has earlier stated he would not approve any ministerial nominees who might question the nation's international alliances, a condition that the far-right SPD has indicated it will meet by proposing non-partisan experts.