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Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent parliamentary vote, has refused to offload his extensive business interests, while insisting he will resolve a ethical dilemma that could block him from assuming the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party came first in the October election but did not secure a parliamentary majority, declared in a social media post that he will not sell his Agrofert group, which operates in agriculture, food production, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently stated I will resolve the ethical issue in compliance with national and European laws,” the billionaire remarked. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the elderly political figure must clarify openly how he will eliminate ethical conflicts stemming from his corporate dealings before being appointed prime minister.

The national charter “explicitly requires the head of state to take into account the possible emergence of a conflict of interest and the ways to address it” when appointing cabinet members, Pavel's office noted.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, stating that Pavel was prepared to designate Babiš as premier “immediately” once the matter was settled.

Business Operations and Legal Issues

Babiš's numerous companies, mostly under the Agrofert group, operate in the nation and other central European countries, benefiting from substantial funds in national and EU farming and other grants, as well as government deals.

Under national legislation, cabinet members cannot receiving public aid or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline government deals, or not enter government.

Past Tenure and Present Intentions

Babiš affirmed he would “follow the regulations” if appointed as premier, but declined to detail how in advance because the matter was “an extremely sensitive and private affair for me, and the media will invariably criticise me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over potential conflicts of interest. He temporarily moved 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 recently that he was once more the sole owner of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but declined to reveal specifics.

Governing Agreement and International Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to strengthen the populist bloc in the region and could strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for international relations, also demanded that the coalition’s programme add a statement on the official stance on Russia’s war in Ukraine, with a commitment to fulfilling alliance duties.

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