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

Stance on Business Holdings

Babiš, whose political movement came first in the autumn election but did not secure a majority in parliament, stated in a online statement that he would not divest his Agrofert conglomerate, which operates in farming, food processing, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with national and European laws,” the billionaire remarked. “This is not like selling a pastry in a bakery.”

President's Demand

The Czech president, Petr Pavel, announced that the elderly populist must clarify openly how he will eliminate conflicts of interest stemming from his corporate dealings before being appointed prime minister.

The Czech constitution “clearly mandates the president to take into account the possible emergence 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 meet his statutory duties”, the announcement said, stating that Pavel was prepared to appoint Babiš as premier “without delay” once the matter was settled.

Corporate Activities and Legal Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional countries, benefiting from substantial funds in domestic and European farming and other subsidies, as well as public contracts.

Under Czech law, cabinet members cannot obtaining public aid or contracts. The ethics organization Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, refuse public contracts, or not enter public office.

Past Tenure and Present Intentions

Babiš affirmed he would “follow the regulations” if appointed as prime minister, but declined to detail how in advance because the matter was “an extremely sensitive and personal matter for me, and journalists will invariably question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over possible ethical issues. He temporarily moved his holdings into trust funds, while retaining some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but refused to reveal specifics.

Coalition Deal and International Consequences

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if approved, is likely to bolster the populist movement in central and eastern Europe and could strain western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for international relations, also demanded that the government agenda include a declaration on the official stance on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The president has earlier said he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by nominating non-partisan experts.