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

Position on Business Holdings

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 agriculture, food processing, and chemical industries.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with national and EU regulations,” the billionaire commented. “This is different from selling a roll in a bakeshop.”

President's Demand

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 business activities before being appointed prime minister.

The national charter “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the ways to address it” when appointing government ministers, Pavel's office noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was ready to appoint Babiš as premier “without delay” once the matter was resolved.

Business Operations and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert umbrella, function in the Czech Republic and other regional countries, receiving substantial funds in domestic and European agricultural and other subsidies, as well as public contracts.

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

Past Tenure and Current Intentions

Babiš affirmed he would “abide by the laws” if appointed as prime minister, but declined to explain how in advance because the issue 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 encountered multiple legal battles and an European inquiry over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

A court and the European Commission both determined that this was insufficient. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but declined to reveal specifics.

Coalition Agreement and International Consequences

The wealthy politician has concluded 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 opposed the EU’s Green Deal.

The incoming administration, if confirmed, is expected to strengthen the populist movement in the region and might challenge western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for foreign policy, also demanded that the coalition’s programme include a declaration on the government’s position on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.

The president has previously stated he would not approve any cabinet candidates who might question the Czech Republic’s international alliances, a condition that the far-right SPD has indicated it will meet by nominating non-partisan experts.