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Andrej Babiš, the self-styled tycoon that secured victory in 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 position of head of government.

Position on Business Holdings

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

“I have repeatedly stated I will never sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with national and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, stated that the elderly political figure must publicly explain how he will remove ethical conflicts stemming from his business activities before assuming the role of prime minister.

The national charter “explicitly requires the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, the presidential administration explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was ready to appoint Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Legal Issues

Babiš's numerous companies, mostly under the Agrofert umbrella, function in the Czech Republic and other central European countries, receiving substantial funds in national and EU farming and other grants, as well as public contracts.

Under Czech law, government ministers cannot receiving public aid or agreements. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline public contracts, or stay out of public office.

Previous Tenure and Present Plans

Babiš said he would “follow the laws” if appointed as premier, but declined to detail how in beforehand because the issue was “an highly personal and private affair for me, and the media will invariably criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an EU investigation over possible 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 determined that this was insufficient. Babiš confirmed recently that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to reveal specifics.

Governing Agreement and Foreign Policy Consequences

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is expected to strengthen the populist bloc in the region and could challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for international relations, also requested that the coalition’s programme add a statement on the government’s position on the conflict in Ukraine, with a pledge to meeting alliance duties.

The head of state has previously said he would not approve any cabinet candidates who might doubt the Czech Republic’s international alliances, a condition that the ultra-conservative party has indicated it will meet by nominating non-partisan experts.