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Andrej Babiš, the self-styled billionaire that secured victory in the recent Czech election, has refused to sell his vast business interests, while asserting he will resolve a conflict of interest that could prevent him from assuming the position of prime minister.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the October vote but did not secure a majority in parliament, declared in a social media post that he will not divest his Agrofert conglomerate, which is active in farming, food processing, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have repeatedly stated I will resolve the conflict of interest in compliance with Czech and European laws,” Babiš remarked. “This is not like selling a roll in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will eliminate conflicts of interest arising from his business activities before assuming the role of premier.

The Czech constitution “clearly mandates the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when selecting government ministers, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, stating that Pavel was ready to designate Babiš as premier “immediately” once the matter was resolved.

Corporate Activities and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert group, operate in the nation and other regional countries, receiving millions of euros in domestic and European farming and other subsidies, as well as public contracts.

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

Past Tenure and Present Plans

Babiš said he would “follow the regulations” if selected as prime minister, but declined to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will invariably criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over possible ethical issues. He temporarily moved his holdings into trust funds, while keeping some influence over them.

A court and the European Commission both determined that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but declined to reveal specifics.

Coalition Deal and Foreign Policy Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has called for a referendum on leaving 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 bloc in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for international relations, also requested that the government agenda add a declaration on the official stance on the conflict in Ukraine, with a pledge to meeting alliance duties.

The president has previously said he would not approve any ministerial nominees who might question the nation's EU and Nato commitments, a requirement that the far-right SPD has indicated it will meet by nominating independent technocrats.