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Andrej Babiš, the self-proclaimed tycoon who secured victory in last month's parliamentary vote, has refused to offload his vast business interests, while asserting he will resolve a conflict of interest that could prevent him from assuming the position of prime minister.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the October vote but lacked a majority in parliament, stated in a online statement that he would not sell his Agrofert group, which is active in farming, food processing, and chemicals.

“I have consistently 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 not like selling a roll in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will remove ethical conflicts stemming from his corporate dealings before assuming the role of prime minister.

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

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the announcement added, stating that Pavel was prepared to appoint Babiš as prime minister “without delay” once the matter was resolved.

Corporate Activities and Legal Concerns

Babiš's numerous firms, mostly under the Agrofert group, operate in the nation and other central European countries, receiving substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, cabinet members cannot obtaining state support or contracts. The ethics organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline public contracts, or stay out of government.

Previous Term and Current Intentions

Babiš affirmed he would “abide by the regulations” if selected as premier, but declined to explain how in beforehand because the issue was “an extremely sensitive and personal matter for me, and the media will always question me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over possible conflicts of interest. He placed his holdings into trust funds, while keeping certain control over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but declined to disclose details.

Governing Agreement and Foreign Policy Consequences

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if confirmed, is likely to strengthen 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 Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the coalition’s programme include a statement on the official stance on Russia’s war in Ukraine, with a commitment to meeting alliance duties.

The president has earlier said he would not endorse any cabinet candidates who might question the nation's international alliances, a condition that the far-right SPD has indicated it will satisfy by nominating non-partisan experts.