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Andrej Babiš, the self-styled tycoon that secured victory in the recent parliamentary vote, has refused to sell his extensive corporate assets, while insisting he will address a ethical dilemma that could block him from taking the role of head of government.

Stance on Corporate Empire

Babiš, whose ANO party came first in the autumn election but did not secure a parliamentary majority, declared in a online statement that he would not divest his Agrofert group, which operates in agriculture, food production, and chemicals.

“I have consistently said I will never sell Agrofert. I have consistently stated I will address the conflict of interest in compliance with Czech and EU regulations,” the billionaire remarked. “This is not like selling a roll in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, announced that the elderly populist must clarify openly how he will remove conflicts of interest arising from his corporate dealings before assuming the role of premier.

The national charter “clearly mandates the president to consider the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, Pavel's office noted.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, primarily under the Agrofert group, function in the Czech Republic and other central European states, benefiting from substantial funds in domestic and European agricultural and other grants, as well as government deals.

Under national legislation, government ministers cannot obtaining public aid or contracts. The anti-corruption organization Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, decline government deals, or stay out of public office.

Past Term and Present Plans

Babiš affirmed he would “follow the laws” if appointed as prime minister, but did not want to detail how in advance because the issue was “an extremely sensitive and private affair for me, and the media will always question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an EU investigation over possible ethical issues. He temporarily moved his holdings into fiduciary arrangements, while keeping certain control over them.

A court and the European Commission both determined that this was insufficient. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but refused to reveal specifics.

Governing Agreement and International Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if approved, is likely to bolster the populist movement in central and eastern Europe and could challenge western support for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for international relations, also demanded that the government agenda add a declaration on the government’s position on the conflict in Ukraine, including a commitment to meeting alliance duties.

The head of state has earlier stated he would not endorse any cabinet candidates who might doubt the Czech Republic’s international alliances, a requirement that the far-right SPD has indicated it will meet by nominating non-partisan experts.