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Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent Czech election, has declined to sell his extensive corporate assets, while asserting he will resolve a conflict of interest that could block him from assuming the position of head of government.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the October vote but did not secure a majority in parliament, stated in a social media post that he will not sell his Agrofert group, which is active in farming, food production, and chemical industries.

“I have repeatedly stated I will not sell Agrofert. I have consistently said I will resolve the ethical issue in accordance with Czech and EU regulations,” the billionaire remarked. “This is not like selling a roll in a bakery.”

President's Demand

The head of state, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will remove 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 potential occurrence of a conflict of interest and the ways to address it” when appointing government ministers, the presidential administration explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement said, stating that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Business Operations and Legal Issues

Babiš's numerous companies, primarily under the Agrofert umbrella, operate in the nation and other regional states, receiving substantial funds in national and EU agricultural and other grants, as well as government deals.

Under national legislation, government ministers are barred from receiving public aid or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, decline government deals, or not enter public office.

Past Term and Current Intentions

Babiš said he would “abide by the regulations” if appointed as premier, but declined to explain how in advance because the issue was “an highly personal and private affair for me, and journalists will invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential conflicts of interest. He placed his assets into trust funds, while keeping certain control over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to reveal specifics.

Coalition Deal and International Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The new government, if confirmed, is likely to strengthen the populist movement in central and eastern Europe 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 president has a role for foreign policy, also demanded that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, including a commitment to meeting alliance duties.

The president has earlier said he would not endorse any cabinet candidates who might doubt the nation's international alliances, a requirement that the ultra-conservative party has indicated it will satisfy by proposing independent technocrats.