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Andrej Babiš, the self-proclaimed tycoon who secured victory in the recent parliamentary vote, has declined to sell his vast corporate assets, while asserting he will address a ethical dilemma that might block him from taking the position of prime minister.

Position 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 will not divest his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

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

President's Demand

The Czech president, Petr Pavel, announced that the elderly populist must clarify openly how he will eliminate conflicts of interest stemming from his corporate dealings before being appointed prime minister.

The national charter “clearly mandates the president to consider the possible emergence of a ethical issue and the ways to address it” when appointing government ministers, Pavel's office explained.

The president “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, noting that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, primarily under the Agrofert group, function in the nation and other regional countries, receiving substantial funds in domestic and European farming and other subsidies, as well as government deals.

Under Czech law, cabinet members cannot obtaining public aid or agreements. The anti-corruption watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, refuse public contracts, or not enter government.

Previous Term and Current Intentions

Babiš affirmed he would “follow the regulations” if selected as premier, but declined to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and the media will invariably question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but refused to disclose details.

Coalition 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 called for a referendum on leaving 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 movement in the region and could challenge western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme include a statement on the government’s position on Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.

The head of state has previously stated he would not endorse 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 independent technocrats.