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

Stance on Corporate Empire

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

“I have repeatedly stated I will not sell Agrofert. I have consistently said I will address the conflict of interest in compliance with national and European laws,” the billionaire commented. “This is different from selling a roll in a bakery.”

President's Requirement

The head of state, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will eliminate ethical conflicts stemming from his corporate dealings before being appointed prime minister.

The national charter “clearly mandates the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the statement said, noting that Pavel was ready to designate Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred firms, primarily under the Agrofert umbrella, function in the nation and other regional states, receiving millions of euros in national and EU farming and other subsidies, as well as government deals.

Under national legislation, government ministers are barred from obtaining public aid or agreements. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse public contracts, or not enter government.

Past Tenure and Current Intentions

Babiš affirmed he would “follow the laws” if appointed as premier, but declined to detail how in advance because the issue was “an highly personal and private affair for me, and journalists will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over potential ethical issues. He placed his assets into trust funds, while retaining certain control over them.

A court and the European Commission both ruled that this was insufficient. Babiš stated last month that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but declined to disclose details.

Governing Deal and Foreign Policy Implications

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

The new government, if confirmed, is likely to bolster the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also requested that the coalition’s programme add a statement on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling alliance duties.

The head of state has earlier stated he would not endorse any cabinet candidates who might doubt the nation's international alliances, a condition that the far-right SPD has indicated it will satisfy by nominating non-partisan experts.