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Andrej Babiš, the self-styled tycoon that won last month's parliamentary vote, has refused to sell his vast business interests, while insisting he will address a ethical dilemma that could prevent him from taking the position of head of government.

Position on Business Holdings

Babiš, whose political movement came first in the autumn vote but lacked a majority in parliament, stated in a social media post that he will not divest his Agrofert group, which operates in farming, food processing, and chemicals.

“I have consistently stated I will never sell Agrofert. I have consistently said I will resolve the ethical issue in accordance with national and European laws,” the billionaire commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will remove 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 ethical issue and the possibilities for its resolution” when selecting cabinet members, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his statutory duties”, the announcement added, stating that Pavel was ready to designate Babiš as premier “without delay” once the issue was resolved.

Business Operations and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert umbrella, function in the Czech Republic and other regional countries, benefiting from substantial funds in domestic and European farming and other grants, as well as government deals.

Under Czech law, government ministers cannot receiving public aid or contracts. The anti-corruption organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or stay out of government.

Previous Term and Present Intentions

Babiš affirmed he would “abide by the laws” if selected as premier, but did not want to explain how in beforehand because the matter was “an highly personal and personal matter for me, and journalists will always criticise me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over potential ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A court and the European Commission both ruled that this was insufficient. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but declined to reveal details.

Governing Agreement and International Implications

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if approved, is likely to strengthen the populist bloc in the region and might strain backing from Western nations for Ukraine – even though 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 demanded 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 approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will meet by proposing non-partisan experts.