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Andrej Babiš, the self-styled tycoon that won last month's parliamentary vote, has declined to sell his vast corporate assets, while asserting he will address a ethical dilemma that might prevent him from assuming the position of prime minister.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the October election but lacked a majority in parliament, declared in a social media post that he will not divest his Agrofert conglomerate, which operates in farming, food processing, and chemicals.

“I have repeatedly said I will not sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with national and EU regulations,” Babiš commented. “This is different from selling a pastry in a bakeshop.”

President'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 business activities before assuming the role of premier.

The Czech constitution “explicitly requires the head of state to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration noted.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, stating that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other regional states, receiving millions of euros in domestic and European farming and other grants, as well as public contracts.

Under Czech law, cabinet members are barred from receiving state support or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline public contracts, or stay out of government.

Previous Tenure and Present Intentions

Babiš said he would “abide by the regulations” if selected as prime minister, but did not want to detail how in beforehand because the matter was “an extremely sensitive and private affair for me, and the media will always criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential ethical issues. He placed his assets into fiduciary arrangements, while retaining certain control over them.

A court and the European Commission both determined that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but declined to reveal details.

Coalition Agreement and International Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if approved, is expected to strengthen the populist bloc in central and eastern Europe and might challenge western support for Ukraine – even though 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 international relations, also demanded that the coalition’s programme include a declaration on the government’s position on the conflict in Ukraine, with a pledge to meeting alliance duties.

The head of state has previously said he would not approve any cabinet candidates who might question the nation's international alliances, a requirement that the far-right SPD has indicated it will meet by nominating non-partisan experts.