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Andrej Babiš, the self-proclaimed billionaire that won the recent parliamentary vote, has refused to offload his extensive corporate assets, while insisting he will address a conflict of interest that might prevent him from taking the role of head of government.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the October vote but lacked a parliamentary majority, stated in a social media post that he will not sell his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have repeatedly said I will address the ethical issue in compliance with national and European laws,” Babiš remarked. “This is not like selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will remove conflicts of interest stemming from his business activities before being appointed premier.

The national charter “clearly mandates the head of state to consider the possible emergence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was prepared to designate Babiš as premier “immediately” once the issue was settled.

Business Operations and Legal Issues

Babiš's numerous firms, primarily under the Agrofert umbrella, function in the nation and other regional states, benefiting from substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under national legislation, government ministers are barred from receiving public aid or agreements. The ethics watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or stay out of public office.

Previous Tenure and Present Intentions

Babiš said he would “follow the laws” if appointed as prime minister, but did not want to explain how in advance because the matter was “an extremely sensitive and private affair for me, and the media will always question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential ethical issues. He placed his holdings into fiduciary arrangements, while retaining some influence over them.

A court and the European Commission both determined that this was insufficient. Babiš confirmed recently that he was again the sole owner of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but refused to reveal specifics.

Governing Agreement and International Implications

The wealthy politician has signed a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

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

Pavel, who as head of state has a role for international relations, also requested that the government agenda include a statement on the official stance on Russia’s war in Ukraine, with a pledge to meeting Nato obligations.

The president has previously stated he would not approve any ministerial nominees who might question the Czech Republic’s international alliances, a requirement that the far-right SPD has said it will satisfy by nominating independent technocrats.