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Andrej Babiš, the self-styled tycoon who won the recent Czech election, has declined to sell his vast business interests, while insisting he will resolve a ethical dilemma that could block him from taking the role of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the October vote but lacked a majority in parliament, stated in a social media post that he would not divest his Agrofert group, which is active in farming, food processing, and chemicals.

“I have consistently said I will never sell Agrofert. I have repeatedly said I will resolve the conflict of interest in accordance with Czech and European laws,” Babiš remarked. “This is not like selling a pastry in a bakeshop.”

President's Requirement

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

The national charter “clearly mandates the head of state to take into account the possible emergence of a conflict of interest and the ways to address it” when appointing cabinet members, Pavel's office explained.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, noting that Pavel was prepared to appoint Babiš as premier “without delay” once the issue was resolved.

Business Operations and Legal Issues

Babiš's numerous firms, primarily under the Agrofert group, function in the nation and other regional countries, benefiting from millions of euros in domestic and European agricultural and other grants, as well as government deals.

Under national legislation, government ministers are barred from receiving public aid or agreements. The anti-corruption organization Transparency International has stated that to avoid a ethical breach, Babiš must either sell, decline government deals, or not enter government.

Previous Tenure and Present Intentions

Babiš said he would “follow the laws” if selected as premier, but did not want to detail how in advance because the issue was “an highly personal and personal matter for me, and the media will always question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, 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 again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but declined to reveal details.

Coalition Deal and International Consequences

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the far-right, pro-Russian 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 Green Deal.

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

Pavel, who as president shares responsibility for foreign policy, also demanded that the coalition’s programme add a declaration on the official stance on the conflict in Ukraine, including a pledge to fulfilling Nato obligations.

The president has earlier stated he would not endorse any cabinet candidates who might question the nation's international alliances, a requirement that the far-right SPD has said it will meet by nominating independent technocrats.