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Andrej Babiš, the self-styled tycoon that secured victory in last month's Czech election, has declined to sell his extensive corporate assets, while asserting he will address a ethical dilemma that might block him from taking the role of head of government.

Position on Corporate Empire

Babiš, whose political movement came first in the autumn vote but lacked a parliamentary majority, declared in a online statement that he would not sell his Agrofert conglomerate, which is active in agriculture, food processing, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have repeatedly stated I will address the ethical issue in accordance with national and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, announced that the elderly populist must clarify openly how he will eliminate ethical conflicts arising from his business activities before assuming the role of prime minister.

The national charter “clearly mandates the president to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, Pavel's office noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was ready to designate Babiš as prime minister “immediately” once the matter was settled.

Corporate Activities and Legal Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the Czech Republic and other regional countries, benefiting from millions of euros in national and EU farming and other subsidies, as well as government deals.

Under Czech law, government ministers cannot obtaining state support or contracts. The ethics watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either sell, refuse public contracts, or stay out of public office.

Previous Tenure and Current Plans

Babiš affirmed he would “abide by the regulations” if appointed as prime minister, but declined to detail how in beforehand because the matter was “an highly personal and private affair for me, and journalists will always question me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over possible ethical issues. He temporarily moved his holdings into fiduciary arrangements, 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 avoid a ethical problem, but declined to reveal details.

Governing Deal and Foreign Policy Consequences

The billionaire populist has signed a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is likely to bolster the populist movement in the region and could strain western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president shares responsibility for international relations, also requested that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, including a commitment to meeting Nato obligations.

The head of state has earlier stated he would not approve 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 proposing non-partisan experts.