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Andrej Babiš, the self-styled tycoon that won last month's parliamentary vote, has refused to offload his extensive business interests, while insisting he will resolve a ethical dilemma that might prevent him from taking the role of head of government.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn vote but lacked a majority in parliament, declared in a social media post that he would not sell his Agrofert group, which operates in farming, food production, and chemicals.

“I have consistently said I will not sell Agrofert. I have consistently said I will address the conflict of interest in accordance with national and European laws,” Babiš commented. “This is different from selling a pastry in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts arising from his business activities before being appointed prime minister.

The Czech constitution “clearly mandates the head of state to take into account the possible emergence of a ethical issue and the ways to address it” when selecting cabinet members, Pavel's office noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement said, stating that Pavel was ready to designate Babiš as premier “without delay” once the issue was settled.

Corporate Activities and Regulatory Concerns

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

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, decline public contracts, or not enter government.

Previous Tenure and Current Intentions

Babiš affirmed he would “follow the laws” if appointed as prime minister, but did not want to explain how in advance because the matter was “an highly personal and private affair for me, and journalists will invariably question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential conflicts of interest. He temporarily moved his assets into trust funds, while retaining certain control over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but refused to disclose details.

Coalition Deal and International Consequences

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if approved, is expected to bolster the populist bloc in central and eastern Europe and could challenge western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also requested that the government agenda include a statement on the official stance on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

The president has earlier said he would not endorse any ministerial nominees who might question the nation's EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by nominating independent technocrats.