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Andrej Babiš, the self-proclaimed tycoon that won last month's parliamentary vote, has refused to offload his vast business interests, while asserting he will address a ethical dilemma that could prevent him from assuming the role of prime minister.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the October election but lacked a majority in parliament, stated in a social media post that he will not sell his Agrofert group, which operates in farming, food production, and chemical industries.

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

President's Requirement

The head of state, Petr Pavel, stated that the elderly political figure must publicly explain how he will eliminate ethical conflicts stemming from his corporate dealings before assuming the role of premier.

The national charter “clearly mandates the head of state to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was ready to designate 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 umbrella, operate in the nation and other central European states, benefiting from substantial funds in national and EU agricultural and other grants, as well as government deals.

Under national legislation, cabinet members cannot obtaining public aid or agreements. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline public contracts, or not enter public office.

Past Term and Current Plans

Babiš said he would “abide by the regulations” if selected as premier, but declined to explain how in beforehand because the matter was “an extremely sensitive and personal matter for me, and journalists will always criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over potential conflicts of interest. He placed his holdings into trust funds, while retaining certain control over them.

A court and the European Commission both determined that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but refused to reveal specifics.

Governing Deal and International Implications

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if approved, is expected to bolster the populist movement in central and eastern Europe and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also requested that the coalition’s programme add a statement on the official stance on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.

The head of state has earlier said he would not endorse any cabinet candidates who might question the nation's international alliances, a condition that the far-right SPD has indicated it will meet by proposing independent technocrats.