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Andrej Babiš, the self-styled tycoon that won last month's Czech election, has declined to offload his extensive corporate assets, while asserting he will address a ethical dilemma that might prevent him from taking the position of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October vote but lacked a parliamentary majority, declared in a social media post that he would not sell his Agrofert group, which operates in agriculture, food production, and chemical industries.

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

Head of State's Requirement

The head of state, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will eliminate ethical conflicts arising from his business activities before being appointed premier.

The Czech constitution “clearly mandates the head of state to consider the potential occurrence of a conflict of interest and the ways to address it” when appointing cabinet members, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, noting that Pavel was prepared to appoint Babiš as prime minister “immediately” once the matter was resolved.

Business Operations and Regulatory Concerns

Babiš's several hundred firms, primarily under the Agrofert group, operate in the Czech Republic and other central European countries, benefiting from substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under national legislation, government ministers are barred from receiving state support or contracts. The anti-corruption watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse government deals, or not enter public office.

Previous Term and Present Intentions

Babiš said he would “abide by the regulations” if selected as premier, but did not want to detail how in beforehand because the matter was “an highly personal and private affair for me, and the media will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over possible conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A court and the EU executive both ruled that this did not suffice. Babiš stated recently that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but declined to disclose details.

Governing Agreement and International Implications

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote 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 bloc in central and eastern Europe and could challenge backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also requested that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, including a pledge to meeting Nato obligations.

The president has earlier said he would not endorse any cabinet candidates who might doubt the Czech Republic’s international alliances, a requirement that the far-right SPD has said it will meet by nominating independent technocrats.