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Andrej Babiš, the self-styled tycoon who secured victory in last month's parliamentary vote, has declined to offload his extensive corporate assets, while asserting he will resolve a ethical dilemma that could block him from taking the role of head of government.

Stance on Business Holdings

Babiš, whose political movement came first in the October election but lacked a majority in parliament, declared in a online statement that he will not sell his Agrofert conglomerate, which operates in farming, food processing, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with national and EU regulations,” Babiš remarked. “This is different from selling a roll in a bakeshop.”

President's Demand

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

The national charter “clearly mandates the head of state to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the announcement added, noting that Pavel was ready to designate Babiš as premier “without delay” once the matter was settled.

Business Operations and Regulatory Concerns

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

Under national legislation, cabinet members are barred from obtaining state support or contracts. The anti-corruption organization Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline public contracts, or not enter government.

Previous Tenure and Current Intentions

Babiš said he would “abide by the laws” if appointed as prime minister, but declined to detail 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 encountered several legal battles and an EU investigation over potential ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both ruled that this did not suffice. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but declined to disclose details.

Governing Deal and International Consequences

The billionaire populist has concluded 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 incoming administration, if confirmed, is expected to bolster the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for international relations, also demanded that the government agenda add a declaration on the official stance on Russia’s war in Ukraine, including a commitment to fulfilling Nato obligations.

The president has previously said he would not approve any cabinet candidates who might doubt the nation's international alliances, a condition that the ultra-conservative party has indicated it will satisfy by proposing non-partisan experts.