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Andrej Babiš, the self-proclaimed tycoon who won last month's Czech election, has declined to offload his extensive corporate assets, while asserting he will resolve a ethical dilemma that could block him from assuming the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but lacked a parliamentary majority, stated in a social media post that he will not sell his Agrofert conglomerate, which operates in farming, food production, and chemicals.

“I have repeatedly said I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with Czech and EU regulations,” the billionaire commented. “This is different from selling a roll in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate conflicts of interest arising from his corporate dealings before being appointed premier.

The national charter “explicitly requires the head of state to take into account the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to appoint Babiš as prime minister “immediately” once the matter was settled.

Business Operations and Legal Concerns

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

Under Czech law, government ministers are barred from obtaining state support or agreements. The ethics organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, refuse government deals, or stay out of government.

Past Tenure and Current Intentions

Babiš affirmed he would “follow the laws” if selected as premier, but declined to explain how in advance because the issue was “an highly personal and private affair for me, and journalists will always question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A court and the European Commission both ruled that this did not suffice. Babiš stated recently that he was again the sole owner of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but refused to reveal specifics.

Coalition Deal and Foreign Policy Consequences

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for 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 approved, is expected to bolster the populist bloc in the region and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme add a statement on the government’s position on the conflict in Ukraine, including a commitment to fulfilling Nato obligations.

The president has previously said he would not approve any ministerial nominees who might question the nation's EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by nominating non-partisan experts.