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Andrej Babiš, the self-proclaimed tycoon that won last month's parliamentary vote, has refused to offload his vast business interests, while insisting he will address a ethical dilemma that could prevent him from taking the position of prime minister.

Stance on Business Holdings

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

“I have consistently said I will not sell Agrofert. I have consistently said I will address the conflict of interest in accordance with Czech and EU regulations,” the billionaire commented. “This is not like selling a pastry in a bakeshop.”

President's Demand

The head of state, Petr Pavel, announced that the 71-year-old 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 take into account the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, Pavel's office noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement said, noting that Pavel was prepared to appoint Babiš as prime minister “immediately” once the issue was settled.

Business Operations and Legal Issues

Babiš's several hundred firms, primarily under the Agrofert umbrella, function in the Czech Republic and other central European states, benefiting from substantial funds in domestic and European agricultural and other grants, as well as public contracts.

Under national legislation, government ministers are barred from obtaining state support or agreements. The ethics watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or stay out of government.

Past Term and Current Plans

Babiš said he would “follow the laws” if appointed as premier, but declined to detail how in beforehand because the issue was “an extremely sensitive and personal matter for me, and journalists will invariably criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential ethical issues. He placed his holdings into trust funds, while retaining some influence over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš confirmed recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but declined to disclose specifics.

Governing Agreement and International Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if approved, is expected to strengthen the populist bloc in central and eastern Europe and could challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for international relations, also requested that the government agenda include a declaration on the official stance on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.

The president has previously stated he would not approve any cabinet candidates who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has said it will satisfy by nominating independent technocrats.