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Andrej Babiš, the self-styled tycoon who won last month's Czech election, has declined to offload his vast business interests, while asserting he will resolve a ethical dilemma that could block him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose political movement came first in the October vote but did not secure a majority in parliament, stated in a social media post that he would not divest his Agrofert conglomerate, which operates in agriculture, food production, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly stated I will address the ethical issue in accordance with national and EU regulations,” the billionaire remarked. “This is not like selling a roll in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove ethical conflicts stemming from his business activities before assuming the role of premier.

The national charter “explicitly requires the president to take into account the possible emergence of a ethical issue and the ways to address it” when selecting cabinet members, the presidential administration noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was prepared to designate Babiš as prime minister “immediately” once the issue was resolved.

Business Operations and Legal Issues

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the nation and other central European states, benefiting from substantial funds in domestic and European agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members cannot receiving public aid or contracts. The anti-corruption watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, decline public contracts, or not enter public office.

Past Tenure and Current Intentions

Babiš said he would “follow the regulations” if appointed as prime minister, but declined to detail how in beforehand because the issue was “an highly personal and private affair for me, and the media will always criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over possible conflicts of interest. He placed 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 last month that he was once more the sole owner of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but declined to reveal details.

Governing Agreement and Foreign Policy Implications

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to strengthen the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

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

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