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Andrej Babiš, the self-styled tycoon who secured victory in last month's Czech election, has declined to sell his extensive corporate assets, while insisting he will resolve a ethical dilemma that might block him from assuming the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party came first in the October vote but lacked a majority in parliament, declared in a social media post that he will not divest his Agrofert conglomerate, which operates in farming, food production, and chemical industries.

“I have consistently stated I will not sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with national and EU regulations,” the billionaire remarked. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will eliminate conflicts of interest arising from his corporate dealings before being appointed premier.

The national charter “clearly mandates the head of state to take into account the potential occurrence of a conflict of interest 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 fulfil his statutory duties”, the announcement said, noting that Pavel was prepared to designate Babiš as premier “immediately” once the matter was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred firms, primarily under the Agrofert group, function in the Czech Republic and other central European countries, receiving millions of euros in national and EU farming and other grants, as well as government deals.

Under Czech law, government ministers are barred from obtaining state support or agreements. The anti-corruption watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, decline public contracts, or stay out of public office.

Previous Term and Current Intentions

Babiš said he would “follow the regulations” if selected as prime minister, but declined to detail how in advance because the matter was “an extremely sensitive and private affair for me, and journalists will always criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over potential ethical issues. He placed his assets into fiduciary arrangements, while retaining certain control over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but declined to disclose details.

Governing Deal and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The new government, if approved, is expected to strengthen the populist movement in the region and might challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme add a statement on the official stance on the conflict in Ukraine, including a pledge to fulfilling Nato obligations.

The president has previously stated he would not endorse any ministerial nominees who might question the nation's EU and Nato commitments, a condition that the far-right SPD has indicated it will meet by proposing independent technocrats.