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Andrej Babiš, the self-styled tycoon who won last month's Czech election, has declined to offload his vast business interests, while insisting he will address a ethical dilemma that might block him from assuming the role of head of government.

Stance on Corporate Empire

Babiš, whose political movement came first in the October election but did not secure a parliamentary majority, declared in a social media post that he would not divest his Agrofert group, which is active in agriculture, food production, and chemicals.

“I have consistently stated I will never sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with national and European laws,” Babiš commented. “This is different from selling a roll in a bakeshop.”

President's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will remove ethical conflicts stemming from his business activities before being appointed prime minister.

The Czech constitution “clearly mandates the head of state to take into account the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, Pavel's office explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement said, stating that Pavel was ready to designate Babiš as premier “without delay” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the nation and other regional countries, receiving millions of euros in national and EU farming and other grants, as well as government deals.

Under Czech law, government ministers are barred from receiving state support or contracts. The anti-corruption organization Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, decline government deals, or stay out of public office.

Previous Tenure and Present Intentions

Babiš affirmed he would “follow the regulations” if appointed as prime minister, but did not want to explain how in beforehand because the issue was “an highly personal and personal matter for me, and the media will invariably question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over possible ethical issues. He temporarily moved his holdings into fiduciary arrangements, while retaining some influence over them.

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

Governing Agreement and Foreign Policy Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a public vote 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 bolster the populist movement in the region and might strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

The president has previously said he would not approve any cabinet candidates who might question the nation's EU and Nato commitments, a condition that the far-right SPD has indicated it will meet by proposing non-partisan experts.