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Andrej Babiš, the self-styled tycoon who won the recent parliamentary vote, has declined to sell his vast business interests, while asserting he will address a ethical dilemma that could block him from taking the role of prime minister.

Position on Business Holdings

Babiš, whose political movement came first in the autumn election but lacked a majority in parliament, declared in a online statement that he will not divest his Agrofert conglomerate, which operates in farming, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have consistently stated I will address the conflict of interest in compliance with Czech and European laws,” Babiš commented. “This is different from selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will remove conflicts of interest stemming from his corporate dealings before assuming the role of prime minister.

The national charter “explicitly requires the head of state to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to appoint Babiš as premier “without delay” once the matter was settled.

Corporate Activities and Legal Concerns

Babiš's numerous firms, mostly under the Agrofert group, function in the nation and other regional countries, benefiting from millions of euros in domestic and European agricultural and other subsidies, as well as government deals.

Under Czech law, government ministers cannot receiving state support or agreements. The anti-corruption organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or stay out of public office.

Previous Term and Current Plans

Babiš affirmed he would “follow the laws” if selected as prime minister, but did not want to explain how in advance because the matter was “an extremely sensitive and personal matter for me, and the media will always criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over potential ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš stated recently that he was once more the sole owner of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but refused to reveal details.

Coalition Deal and International Implications

The wealthy politician has signed a governing pact 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 opposed the EU’s environmental policy.

The new government, if confirmed, is expected to bolster the populist bloc in the region and could strain 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 demanded that the coalition’s programme include a declaration on the government’s position on the conflict in Ukraine, including a pledge to meeting alliance duties.

The head of state has earlier said he would not approve any ministerial nominees who might question the Czech Republic’s international alliances, a condition that the far-right SPD has said it will meet by proposing independent technocrats.