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Andrej Babiš, the self-styled billionaire that secured victory in the recent Czech election, has refused to offload his extensive corporate assets, while asserting he will address a conflict of interest that could block him from assuming the position of head of government.

Position on Corporate Empire

Babiš, whose ANO party came first in the October election but did not secure a majority in parliament, stated in a social media post that he will not divest his Agrofert group, which is active in farming, food production, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have consistently stated I will address the ethical issue in accordance with national and EU regulations,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, stated that the elderly political figure must publicly explain how he will eliminate conflicts of interest stemming from his business activities before being appointed prime minister.

The national charter “explicitly requires the head of state to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, the presidential administration noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the announcement said, stating that Pavel was prepared to appoint Babiš as premier “immediately” once the matter was resolved.

Corporate Activities and Regulatory Concerns

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

Under national legislation, government ministers are barred from obtaining public aid or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or stay out of public office.

Previous Tenure and Current Intentions

Babiš said he would “follow the regulations” if selected as premier, but did not want to detail how in advance because the issue was “an highly personal and private affair for me, and the media will invariably question me regardless”.

During his first term 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 retaining some influence over them.

A judicial body and the EU executive 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 prevent a ethical problem, but refused to disclose details.

Coalition Agreement and Foreign Policy Implications

The wealthy politician has signed a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The new government, if confirmed, is expected to strengthen the populist movement in central and eastern Europe and could strain western support for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

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 meeting Nato obligations.

The president has earlier stated he would not approve 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.