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Andrej Babiš, the self-proclaimed billionaire that secured victory in the recent parliamentary vote, has refused to sell his extensive business interests, while insisting he will address a conflict of interest that might prevent him from assuming the role of head of government.

Position on Corporate Empire

Babiš, whose ANO party came first in the October election but lacked a parliamentary majority, stated in a social media post that he would not sell his Agrofert conglomerate, which operates in agriculture, food production, and chemical industries.

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

Head of State's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate conflicts of interest arising from his corporate dealings before being appointed premier.

The national charter “clearly mandates the president to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous companies, primarily under the Agrofert umbrella, function in the Czech Republic and other regional countries, receiving substantial funds in domestic and European agricultural and other subsidies, as well as government deals.

Under national legislation, cabinet members are barred from receiving public aid or contracts. The anti-corruption organization Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or stay out of government.

Past Tenure and Present Intentions

Babiš said he would “abide by the regulations” if appointed as prime minister, but declined to detail how in beforehand because the matter was “an highly personal and personal matter for me, and journalists will always question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over possible conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to disclose details.

Coalition Deal and International Implications

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a referendum 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 bolster the populist bloc in central and eastern Europe and might challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda add a declaration on the government’s position on the conflict in Ukraine, including a commitment to fulfilling Nato obligations.

The president has earlier stated he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will meet by proposing independent technocrats.