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Andrej Babiš, the self-proclaimed tycoon that won last month's parliamentary vote, has refused to sell his extensive business interests, while insisting he will address a conflict of interest that might block him from assuming the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October vote but did not secure a majority in parliament, declared in a social media post that he would not sell his Agrofert group, which operates in farming, food production, and chemical industries.

“I have repeatedly stated I will not sell Agrofert. I have repeatedly said I will address the conflict of interest in accordance with Czech and EU regulations,” Babiš remarked. “This is not like selling a roll in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the elderly populist must publicly explain how he will remove ethical conflicts arising from his corporate dealings before being appointed premier.

The Czech constitution “clearly mandates the president to consider the potential occurrence of a ethical issue and the ways to address it” when selecting cabinet members, Pavel's office 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 prepared to designate Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Legal Concerns

Babiš's numerous firms, primarily under the Agrofert group, operate in the Czech Republic and other regional states, receiving millions of euros in national and EU farming and other grants, as well as government deals.

Under Czech law, government ministers cannot obtaining public aid or agreements. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either sell, refuse government deals, or stay out of public office.

Past Tenure and Present Intentions

Babiš said he would “follow the laws” if appointed as prime minister, but declined to explain how in beforehand because the matter was “an highly personal and personal matter for me, and the media will invariably question 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 assets into trust funds, while retaining some influence over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš confirmed recently that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to disclose details.

Coalition Deal and Foreign Policy Implications

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The new government, if approved, is expected to bolster the populist movement in the region and might challenge western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him 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 declaration on the official stance on the conflict in Ukraine, with a pledge to fulfilling alliance duties.

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