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Andrej Babiš, the self-proclaimed tycoon that secured victory in last month's parliamentary vote, has declined to sell his extensive business interests, while insisting he will resolve a ethical dilemma that could prevent him from assuming the role of head of government.

Stance on Business Holdings

Babiš, whose ANO party came first in the autumn election but did not secure a majority in parliament, declared in a online statement that he would not sell his Agrofert group, which is active in agriculture, food production, and chemical industries.

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

President's Demand

The head of state, Petr Pavel, stated that the elderly populist must clarify openly how he will remove conflicts of interest arising from his business activities before assuming the role of premier.

The Czech constitution “explicitly requires the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, the presidential administration noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, stating that Pavel was ready to appoint Babiš as premier “immediately” once the matter was resolved.

Business Operations and Legal Concerns

Babiš's numerous companies, primarily under the Agrofert umbrella, function in the nation and other central European countries, benefiting from substantial funds in domestic and European agricultural and other grants, as well as government deals.

Under national legislation, cabinet members are barred from obtaining state support or agreements. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or stay out of government.

Past Tenure and Present Intentions

Babiš affirmed he would “follow the regulations” if appointed as premier, but did not want to detail how in beforehand because the matter was “an highly personal and private affair for me, and the media will invariably criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over potential conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.

A court and the European Commission both ruled that this did not suffice. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to disclose details.

Coalition Agreement and Foreign Policy Implications

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if approved, is expected to bolster the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – although 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 foreign policy, also demanded that the coalition’s programme add a statement on the government’s position on the conflict in Ukraine, including a pledge to fulfilling Nato obligations.

The president has previously stated he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by proposing independent technocrats.