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Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent parliamentary vote, has declined to sell his vast corporate assets, while insisting he will resolve a ethical dilemma that could prevent him from assuming the role of head of government.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but lacked 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 consistently stated I will never sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with national and European laws,” Babiš commented. “This is different from selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly political figure must clarify openly how he will remove conflicts of interest stemming from his corporate dealings before assuming the role of premier.

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the ways to address it” when appointing cabinet members, the presidential administration explained.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was resolved.

Business Operations and Regulatory Issues

Babiš's several hundred firms, primarily under the Agrofert group, function in the nation and other central European countries, receiving millions of euros in national and EU farming and other subsidies, as well as government deals.

Under national legislation, government ministers cannot receiving public aid or contracts. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or not enter government.

Previous Term and Present Plans

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

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A court and the EU executive both ruled that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to disclose details.

Governing Agreement and International Consequences

The billionaire populist has signed a governing pact 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 incoming administration, if approved, is expected to strengthen the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for foreign policy, also demanded that the government agenda add a declaration on the official stance on the conflict in Ukraine, including a commitment to meeting alliance duties.

The head of state has previously stated he would not endorse any cabinet candidates who might doubt the nation's EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will meet by proposing independent technocrats.