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Andrej Babiš, the self-proclaimed tycoon that won the recent parliamentary vote, has refused to offload his vast corporate assets, while insisting he will resolve a ethical dilemma that could prevent him from taking the role of prime minister.

Position on Corporate Empire

Babiš, whose political movement came first in the autumn election but did not secure a majority in parliament, stated in a online statement that he will not sell his Agrofert conglomerate, which is active in farming, food processing, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly said I will address the ethical issue in accordance with national and European laws,” Babiš remarked. “This is different from selling a roll in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the elderly populist must clarify openly how he will eliminate conflicts of interest stemming from his business activities before assuming the role of prime minister.

The national charter “clearly mandates the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when appointing government ministers, Pavel's office explained.

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, stating that Pavel was prepared to designate Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, primarily under the Agrofert group, operate in the nation and other regional countries, receiving millions of euros in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers are barred from receiving state support or contracts. The anti-corruption organization Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, refuse public contracts, or not enter government.

Past Term and Present Plans

Babiš affirmed he would “follow the laws” if selected as prime minister, but declined to explain how in advance because the matter was “an extremely sensitive and personal matter for me, and journalists will always question me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into trust funds, while retaining 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 sole owner of Agrofert and insisted he was “implementing measures” to avoid a conflict of interest, but refused to disclose details.

Governing Deal and International Consequences

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The new government, if confirmed, is expected to strengthen the populist bloc in the region and might challenge western support for Ukraine – even though Babiš has contacted 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 fulfilling alliance duties.

The head of state has earlier stated he would not approve any ministerial nominees who might doubt the nation's EU and Nato commitments, a requirement that the far-right SPD has said it will meet by nominating independent technocrats.