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Andrej Babiš, the self-styled tycoon that secured victory in the recent Czech election, has declined to offload his vast business interests, while asserting he will resolve a ethical dilemma that might prevent him from taking the role of head of government.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn vote but did not secure a majority in parliament, declared in a social media post that he would not divest his Agrofert group, which operates in farming, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently said I will resolve the conflict of interest in accordance with national and EU regulations,” the billionaire remarked. “This is different from selling a roll in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will eliminate conflicts of interest stemming from his business activities before being appointed premier.

The Czech constitution “explicitly requires the head of state to take into account the potential occurrence of a conflict of interest and the ways to address it” when appointing cabinet members, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement said, noting that Pavel was ready to designate Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's numerous companies, mostly under the Agrofert group, operate in the Czech Republic and other central European states, receiving millions of euros in domestic and European 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 indicated that to prevent a ethical breach, Babiš must either sell, decline government deals, or stay out of public office.

Previous Tenure and Current Intentions

Babiš said he would “abide by the laws” if selected as premier, but declined to detail how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will always question me regardless”.

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

A judicial body and the European Commission both determined that this did not suffice. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to reveal specifics.

Coalition Agreement and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is likely to strengthen the populist movement in central and eastern Europe and might challenge 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 president has a role for international relations, also requested that the government agenda add a declaration on the government’s position on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

The head of state has previously said he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a condition that the far-right SPD has indicated it will meet by proposing independent technocrats.