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Andrej Babiš, the self-styled tycoon that secured victory in the recent Czech election, has refused to offload his extensive business interests, while insisting he will address a ethical dilemma that could block him from assuming the role of prime minister.

Position on Corporate Empire

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

“I have consistently stated I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in accordance with national and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will remove conflicts of interest stemming from his business activities before being appointed premier.

The national charter “explicitly requires the president to consider the potential occurrence of a ethical issue and the ways to address it” when appointing government ministers, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was resolved.

Business Operations and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the Czech Republic and other regional states, receiving millions of euros in national and EU agricultural and other grants, as well as government deals.

Under Czech law, government ministers cannot receiving state support or contracts. The ethics organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, decline public contracts, or not enter government.

Past Tenure and Current Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but declined to explain how in advance because the matter was “an highly personal and personal matter for me, and journalists will invariably criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over potential ethical issues. He temporarily moved his assets into trust funds, while keeping certain control over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš stated recently that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but declined to reveal specifics.

Governing Agreement and International Consequences

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to bolster the populist movement in central and eastern Europe and might strain western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for international relations, also demanded that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, including a commitment to meeting alliance duties.

The president has earlier said he would not endorse any ministerial nominees who might question the Czech Republic’s international alliances, a requirement that the far-right SPD has indicated it will satisfy by proposing independent technocrats.