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Andrej Babiš, the self-styled tycoon that secured victory in the recent Czech election, has declined to sell his vast corporate assets, while insisting he will resolve a ethical dilemma that could prevent him from taking the position of prime minister.

Stance on Corporate Empire

Babiš, whose political movement emerged victorious in the October vote but lacked a parliamentary majority, declared in a social media post that he would not divest his Agrofert conglomerate, which is active in farming, food production, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will resolve the ethical issue in compliance with Czech and EU regulations,” the billionaire commented. “This is not like selling a pastry in a bakery.”

President's Demand

The head of state, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will remove conflicts of interest arising from his corporate dealings before assuming the role of premier.

The Czech constitution “explicitly requires the president to take into account the possible emergence of a conflict of interest and the ways to address it” when selecting government ministers, the presidential administration explained.

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

Business Operations and Legal Concerns

Babiš's numerous companies, mostly under the Agrofert umbrella, function in the Czech Republic and other central European countries, benefiting from substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under Czech law, government ministers cannot receiving public aid or contracts. The anti-corruption watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, refuse public contracts, or not enter government.

Past Tenure and Current Intentions

Babiš said he would “abide by the regulations” if selected as prime minister, but declined to detail how in beforehand because the issue was “an highly personal and private affair for me, and the media will always criticise me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential ethical issues. He placed his assets 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 sole owner of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but refused to reveal details.

Coalition Agreement and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement 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 primarily campaigned against the EU’s Green Deal.

The incoming administration, if approved, is likely to bolster the populist bloc in central and eastern Europe and could challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for international relations, also demanded that the coalition’s programme add a statement on the official stance on Russia’s war in Ukraine, with a commitment to meeting alliance duties.

The head of state has earlier stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will meet by proposing independent technocrats.