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Andrej Babiš, the self-styled tycoon who secured victory in last month's parliamentary vote, has refused to offload his extensive business interests, while asserting he will resolve a ethical dilemma that could prevent him from assuming the role of prime minister.

Position on Corporate Empire

Babiš, whose political movement came first in the October vote but lacked a parliamentary majority, declared in a social media post that he will not divest his Agrofert conglomerate, which is active in farming, food processing, and chemicals.

“I have consistently stated I will never sell Agrofert. I have consistently stated I will resolve the ethical issue in compliance with Czech and EU regulations,” Babiš remarked. “This is different from selling a roll in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will remove conflicts of interest stemming from his business activities before being appointed premier.

The national charter “clearly mandates the president to consider the possible emergence 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 statutory duties”, the announcement added, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the matter was resolved.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert umbrella, operate in the nation and other regional states, benefiting from millions of euros in national and EU farming and other grants, as well as government deals.

Under Czech law, cabinet members are barred from receiving state support or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, refuse public contracts, or not enter public office.

Previous Term and Current Plans

Babiš said he would “abide by the regulations” if selected as premier, but did not want to detail how in advance because the issue was “an highly personal and private affair for me, and the media will invariably criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over possible conflicts of interest. He temporarily moved his assets into trust funds, while keeping some influence over them.

A judicial body and the European Commission both ruled that this was insufficient. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to disclose specifics.

Governing Agreement and Foreign Policy Implications

The wealthy politician has signed a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a public vote on leaving 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 might challenge western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for foreign policy, also demanded that the coalition’s programme include a statement on the official stance on Russia’s war in Ukraine, with a commitment to meeting Nato obligations.

The president has earlier said he would not approve any ministerial nominees who might question the nation's international alliances, a condition that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.