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Andrej Babiš, the self-proclaimed tycoon that secured victory in last month's Czech election, has declined to offload his vast corporate assets, while insisting he will address a conflict of interest that might block him from assuming the position of head of government.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn vote but did not secure a parliamentary majority, stated in a social media post that he will not sell his Agrofert conglomerate, which is active in farming, food processing, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have consistently said I will resolve the conflict of interest in accordance with national and European laws,” Babiš remarked. “This is different from selling a pastry in a bakery.”

Head of State's Demand

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

The national charter “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when selecting cabinet members, Pavel's office explained.

The head of state “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the statement added, stating that Pavel was prepared to designate Babiš as premier “without delay” once the matter was resolved.

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 millions of euros in domestic and European agricultural and other subsidies, as well as public contracts.

Under national legislation, cabinet members cannot obtaining state support or agreements. The anti-corruption watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either sell, decline public contracts, or not enter government.

Previous Tenure and Current Plans

Babiš said he would “follow the laws” if selected as prime minister, but did not want to detail how in beforehand because the matter was “an extremely sensitive and personal matter for me, and journalists will invariably criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over potential conflicts of interest. He placed his assets into fiduciary arrangements, while keeping some influence over them.

A court and the European Commission both determined that this did not suffice. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but refused to reveal details.

Coalition Deal and International Consequences

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a referendum 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 bolster the populist bloc in the region and might strain backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme include a statement on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has earlier said he would not endorse any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by proposing independent technocrats.