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Andrej Babiš, the self-styled billionaire who secured victory in the recent parliamentary vote, has declined to offload his extensive business interests, while asserting he will resolve a ethical dilemma that could prevent him from assuming the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the October election but lacked a parliamentary majority, declared in a online statement that he will not sell his Agrofert group, which operates in farming, food processing, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have consistently said I will address the conflict of interest in compliance with national and EU regulations,” the billionaire commented. “This is different from selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will eliminate conflicts of interest arising from his business activities before assuming the role of prime minister.

The Czech constitution “clearly mandates the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, the presidential administration explained.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to appoint Babiš as prime minister “immediately” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the nation and other regional countries, receiving substantial funds in national and EU farming and other grants, as well as government deals.

Under Czech law, government ministers cannot obtaining public aid or contracts. The ethics watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse public contracts, or stay out of government.

Past Term and Present Plans

Babiš said he would “follow the regulations” if selected as prime minister, but declined to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will always criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over potential ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining certain control 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 insisted he was “taking steps” to avoid a conflict of interest, but refused to reveal specifics.

Coalition Deal and Foreign Policy Implications

The billionaire populist 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 campaigned against the EU’s Green Deal.

The incoming administration, if confirmed, is expected to bolster the populist movement in the region and could challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, 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 include a statement on the official stance on the conflict in Ukraine, with a commitment to fulfilling Nato obligations.

The president has previously 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 satisfy by nominating non-partisan experts.