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Andrej Babiš, the self-styled billionaire that secured victory in the recent Czech election, has declined to sell his extensive corporate assets, while asserting he will resolve a ethical dilemma that might prevent him from taking the role of head of government.

Stance on Business Holdings

Babiš, whose political movement came first in the October election but did not secure a parliamentary majority, declared in a online statement that he would not sell his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have repeatedly said I will address the conflict of interest in accordance with Czech and EU regulations,” the billionaire remarked. “This is not like selling a pastry in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, stated that the elderly political figure must clarify openly how he will remove conflicts of interest stemming from his corporate dealings before being appointed premier.

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

The head of state “wants it to be clear in what precise manner Andrej Babiš will meet his statutory duties”, the announcement said, noting that Pavel was ready to appoint Babiš as premier “immediately” once the issue was settled.

Business Operations and Regulatory Issues

Babiš's several hundred companies, primarily under the Agrofert group, operate in the nation and other central European states, benefiting from millions of euros in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, cabinet members are barred from receiving public aid or contracts. The ethics watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, decline public contracts, or not enter government.

Previous Tenure and Present Intentions

Babiš said he would “abide by the regulations” if appointed as premier, but did not want to explain how in beforehand because the matter was “an extremely sensitive and private affair for me, and the media will invariably question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential conflicts of interest. He placed his holdings into trust funds, while retaining certain control 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 insisted he was “taking steps” to prevent a ethical problem, but refused to reveal specifics.

Coalition Deal and Foreign Policy Implications

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated 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 confirmed, is expected to strengthen the populist movement in the region and might challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for foreign policy, also demanded that the coalition’s programme add a statement on the government’s position on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The president has previously stated he would not approve any cabinet candidates who might doubt the nation's international alliances, a condition that the far-right SPD has indicated it will meet by nominating independent technocrats.