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Andrej Babiš, the self-proclaimed tycoon that won the recent Czech election, has refused to sell his extensive business interests, while insisting he will resolve a ethical dilemma that might prevent him from assuming the role of head of government.

Stance on Corporate Empire

Babiš, whose political movement came first in the October election but did not secure a parliamentary majority, stated in a online statement that he would not sell his Agrofert conglomerate, which operates in farming, food processing, and chemicals.

“I have consistently stated I will never sell Agrofert. I have repeatedly stated I will resolve the ethical issue in compliance with Czech and European laws,” Babiš commented. “This is not like selling a pastry in a bakery.”

President's Demand

The Czech president, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate conflicts of interest stemming from his corporate dealings before being appointed prime minister.

The national charter “clearly mandates the head of state to consider the possible emergence of a conflict of interest and the ways to address it” when selecting cabinet members, Pavel's office explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the statement added, stating that Pavel was ready to designate Babiš as prime minister “immediately” once the matter was settled.

Corporate Activities and Legal Issues

Babiš's numerous firms, primarily under the Agrofert umbrella, function in the nation and other regional states, receiving substantial funds in national and EU farming and other grants, as well as public contracts.

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

Past Term and Current Plans

Babiš said he would “abide by the laws” if appointed as prime minister, but did not want to detail how in beforehand because the matter was “an extremely sensitive and private affair for me, and journalists will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible ethical issues. He placed his holdings into fiduciary arrangements, while keeping certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed last month that he was again the sole owner of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but refused to reveal specifics.

Governing Agreement and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, 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 environmental policy.

The incoming administration, if approved, is expected to strengthen the populist bloc in central and eastern Europe and might challenge western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for foreign policy, also requested that the government agenda include a declaration on the government’s position on the conflict in Ukraine, with a commitment to fulfilling alliance duties.

The president has earlier said he would not endorse any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will meet by nominating independent technocrats.