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Andrej Babiš, the self-proclaimed tycoon that won last month's parliamentary vote, has refused to offload his extensive corporate assets, while insisting he will address a ethical dilemma that could block him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn election but lacked a parliamentary majority, stated in a online statement that he would not divest his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

“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 different from selling a pastry in a bakeshop.”

Head of State's Requirement

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

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, Pavel's office noted.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement added, noting that Pavel was prepared to designate Babiš as premier “immediately” once the matter was settled.

Corporate Activities and Legal Issues

Babiš's numerous firms, mostly under the Agrofert group, operate in the nation and other central European states, receiving millions of euros in domestic and European agricultural and other grants, as well as government deals.

Under national legislation, cabinet members cannot obtaining state support or contracts. The anti-corruption organization Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or not enter public office.

Past Term and Present Plans

Babiš said he would “abide by the regulations” if appointed as premier, but did not want to explain how in advance because the matter was “an highly personal and personal matter for me, and the media will always criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced several court cases and an European inquiry over potential ethical issues. He placed his holdings into fiduciary arrangements, while keeping certain control over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but declined to disclose specifics.

Coalition Agreement and International Implications

The billionaire populist has signed a governing pact with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

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

Pavel, who as head of state has a role for foreign policy, also demanded that the government agenda include a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to meeting Nato obligations.

The president has previously stated he would not endorse any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will satisfy by proposing independent technocrats.