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Andrej Babiš, the self-proclaimed tycoon who won last month's Czech election, has refused to offload his vast business interests, while insisting he will resolve a ethical dilemma that might prevent him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn vote but did not secure a majority in parliament, stated in a social media post that he will not sell his Agrofert group, which is active in farming, food processing, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have repeatedly said I will address the conflict of interest in compliance with Czech and EU regulations,” Babiš commented. “This is different from selling a roll in a bakeshop.”

President's Demand

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

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

The president “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the announcement said, stating that Pavel was ready to designate Babiš as premier “immediately” once the issue was settled.

Business Operations and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert group, operate in the Czech Republic and other central European countries, receiving millions of euros in domestic and European agricultural and other subsidies, as well as government deals.

Under national legislation, government ministers cannot obtaining public aid or agreements. The anti-corruption organization Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline public contracts, or stay out of government.

Previous Tenure and Current Plans

Babiš said he would “abide by the regulations” if appointed as prime minister, but did not want to explain how in beforehand because the issue was “an highly personal and private affair for me, and journalists will invariably question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into trust funds, while keeping certain control over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš confirmed recently that he was again the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to reveal details.

Coalition Agreement and Foreign Policy Consequences

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

The incoming administration, if confirmed, is expected to bolster the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for foreign policy, also requested that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, including a commitment to meeting alliance duties.

The president has previously said he would not approve any ministerial nominees who might doubt the nation's international alliances, a condition that the ultra-conservative party has indicated it will meet by nominating non-partisan experts.