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Andrej Babiš, the self-proclaimed tycoon that secured victory in last month's Czech election, has declined to offload his extensive business interests, while insisting he will address a ethical dilemma that might prevent him from taking the position of head of government.

Stance on Business Holdings

Babiš, whose political movement came first in the October election but did not secure a parliamentary majority, declared in a social media post that he would not sell his Agrofert conglomerate, which operates in farming, food processing, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have consistently said I will resolve the ethical issue in compliance with national and EU regulations,” the billionaire remarked. “This is different from selling a pastry in a bakery.”

President's Requirement

The Czech president, 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 national charter “explicitly requires the head of state to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, Pavel's office noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement said, noting that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, mostly under the Agrofert group, function in the Czech Republic and other regional states, receiving millions of euros in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members are barred from obtaining state support or contracts. The ethics watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, decline government deals, or stay out of government.

Past Term and Current Intentions

Babiš said he would “abide by the laws” 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 the media will always question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over potential conflicts of interest. He temporarily moved 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 stated recently that he was once more the sole owner of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but refused to reveal details.

Coalition Deal and Foreign Policy Implications

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a referendum 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 movement in central and eastern Europe and could challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for international relations, also requested that the government agenda add a declaration on the government’s position on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

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