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Andrej Babiš, the self-proclaimed tycoon that secured victory in last month's parliamentary vote, has declined to sell his vast corporate assets, while insisting he will resolve a ethical dilemma that might prevent him from taking the position of head of government.

Position on Business Holdings

Babiš, whose political movement came first in the autumn election but lacked a majority in parliament, stated in a online statement that he would not divest his Agrofert conglomerate, which operates in farming, food production, and chemicals.

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

President's Demand

The Czech president, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will eliminate conflicts of interest stemming from his corporate dealings before being appointed prime minister.

The Czech constitution “explicitly requires the president to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, Pavel's office explained.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the statement added, stating that Pavel was ready to appoint Babiš as premier “without delay” once the issue was settled.

Corporate Activities and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert umbrella, function in the nation and other regional countries, receiving substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers are barred from receiving state support or contracts. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either divest, decline government deals, or stay out of government.

Previous Tenure and Present Intentions

Babiš affirmed he would “abide by the laws” if selected as prime minister, but did not want to detail how in advance because the matter was “an extremely sensitive and personal matter for me, and the media will invariably question me regardless”.

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

A court and the European Commission both determined that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but refused to disclose specifics.

Coalition Agreement and International Consequences

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if confirmed, is likely to strengthen the populist bloc in the region and might strain backing from Western nations for Ukraine – although Babiš has contacted 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 government agenda include a declaration on the government’s position on the conflict in Ukraine, including a commitment to fulfilling Nato obligations.

The head of state has earlier stated he would not endorse any ministerial nominees who might doubt the nation's international alliances, a requirement that the far-right SPD has indicated it will meet by proposing non-partisan experts.