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Andrej Babiš, the self-proclaimed tycoon who secured victory in last month's parliamentary vote, has refused to sell his vast corporate assets, while insisting he will address a ethical dilemma that might prevent him from assuming the position of prime minister.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the October vote but did not secure a parliamentary majority, stated in a social media post that he would not sell his Agrofert group, which is active in agriculture, food production, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently said I will address the ethical issue in accordance with national and European laws,” Babiš commented. “This is not like selling a pastry in a bakery.”

President's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will remove ethical conflicts stemming from his business activities before assuming the role of prime minister.

The Czech constitution “explicitly requires the president to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the statement said, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was resolved.

Business Operations and Legal Issues

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

Under national legislation, cabinet members cannot obtaining state support or contracts. The anti-corruption watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, refuse public contracts, or not enter public office.

Past Tenure and Current Plans

Babiš affirmed he would “abide by the laws” if appointed as premier, but declined to explain how in beforehand because the issue was “an extremely sensitive and personal matter for me, and the media will invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.

A judicial body and the EU executive both ruled that this did not suffice. Babiš confirmed last month that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to reveal details.

Coalition Deal and International Implications

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a referendum 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 bolster the populist movement in the region and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, including a pledge to fulfilling alliance duties.

The president has previously stated he would not approve any cabinet candidates who might doubt the nation's international alliances, a condition that the far-right SPD has said it will satisfy by proposing non-partisan experts.