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Andrej Babiš, the self-proclaimed tycoon who won the recent Czech election, has declined to sell his vast business interests, while insisting he will resolve a ethical dilemma that might prevent him from taking the position of head of government.

Position on Business Holdings

Babiš, whose ANO party came first in the autumn vote but lacked a majority in parliament, stated in a online statement that he would not sell his Agrofert conglomerate, which operates in farming, food production, and chemicals.

“I have consistently said I will not sell Agrofert. I have repeatedly stated I will resolve the ethical issue in compliance with Czech and European laws,” Babiš commented. “This is not like selling a pastry in a bakery.”

President's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove ethical conflicts stemming from his corporate dealings before being appointed prime minister.

The national charter “explicitly requires the head of state to take into account the possible emergence of a conflict of interest and the possibilities for its resolution” when appointing cabinet members, the presidential administration noted.

The head of state “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the announcement added, stating that Pavel was ready to appoint Babiš as premier “without delay” once the matter was settled.

Business Operations and Regulatory Issues

Babiš's several hundred firms, mostly under the Agrofert group, operate in the nation and other central European countries, benefiting from substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, cabinet members cannot receiving state support or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse public contracts, or not enter public office.

Past Term and Present Intentions

Babiš said he would “follow the regulations” if selected as premier, but declined to explain how in beforehand because the matter was “an highly personal and personal matter for me, and the media will always question me anyway”.

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 temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

A court 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 insisted he was “taking steps” to prevent a ethical problem, but declined to reveal details.

Governing Agreement and International Implications

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The new government, if confirmed, is likely to strengthen the populist bloc in the region and could strain western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme add a declaration on the government’s position on the conflict in Ukraine, including a pledge to meeting Nato obligations.

The president has previously said he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a requirement that the far-right SPD has said it will meet by proposing non-partisan experts.