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Andrej Babiš, the self-proclaimed tycoon that won the recent parliamentary vote, has declined to offload his extensive corporate assets, while asserting he will address a conflict of interest that might prevent him from assuming the position of head of government.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October election but did not secure a majority in parliament, declared in a online statement that he would not sell his Agrofert conglomerate, which is active in farming, food processing, and chemicals.

“I have consistently said I will not sell Agrofert. I have consistently said I will address the ethical issue in accordance with Czech and European laws,” Babiš commented. “This is not like selling a pastry in a bakery.”

President's Requirement

The head of state, Petr Pavel, stated that the elderly political figure must clarify openly how he will eliminate ethical conflicts arising from his business activities before assuming the role of premier.

The Czech constitution “clearly mandates the head of state to consider the possible emergence of a ethical issue and the ways to address it” when appointing cabinet members, Pavel's office explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, stating that Pavel was prepared to appoint Babiš as premier “without delay” once the issue was resolved.

Corporate Activities and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert group, operate in the nation and other regional countries, benefiting from substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under national legislation, government ministers cannot obtaining public aid or agreements. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or stay out of government.

Previous Tenure and Present Intentions

Babiš said he would “follow the laws” if appointed as prime minister, but did not want to detail how in beforehand because the issue was “an highly personal and personal matter for me, and the media will always criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over potential ethical issues. He placed his holdings into fiduciary arrangements, while keeping 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 declined to reveal details.

Governing Agreement and International Consequences

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

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

Pavel, who as president has a role for foreign policy, also requested that the coalition’s programme add a statement on the official stance on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The head of state has earlier stated he would not approve any ministerial nominees who might doubt the nation's international alliances, a condition that the ultra-conservative party has said it will satisfy by proposing independent technocrats.