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Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent Czech election, has declined to sell his extensive corporate assets, while insisting he will resolve a ethical dilemma that could block him from assuming the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a majority in parliament, declared in a social media post that he will not sell his Agrofert group, which operates in farming, food processing, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly said I will address the conflict of interest in accordance with Czech and European laws,” Babiš commented. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will remove ethical conflicts stemming from his business activities before assuming the role of premier.

The Czech constitution “explicitly requires the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, Pavel's office explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the statement added, noting that Pavel was ready to designate Babiš as prime minister “immediately” once the matter was settled.

Business Operations and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert umbrella, function in the Czech Republic and other central European countries, receiving millions of euros in domestic and European farming and other subsidies, as well as public contracts.

Under national legislation, cabinet members cannot receiving state support or contracts. The anti-corruption organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or stay out of government.

Previous Tenure and Present Plans

Babiš said he would “abide by the laws” if appointed as premier, but declined to explain how in advance because the issue was “an highly personal and personal matter for me, and the media will invariably criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while retaining some influence over them.

A court and the European Commission both ruled that this was insufficient. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but declined to reveal details.

Coalition Agreement and International Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if approved, is likely to bolster the populist movement in central and eastern Europe and could challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for international relations, also demanded that the government agenda include a declaration on the official stance on the conflict in Ukraine, with a commitment to fulfilling alliance duties.

The head of state has earlier said he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has said it will satisfy by nominating independent technocrats.