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Andrej Babiš, the self-styled billionaire that secured victory in last month's parliamentary vote, has declined to sell his extensive corporate assets, while asserting he will address a ethical dilemma that could block him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October election but lacked a majority in parliament, declared in a social media post that he would not sell his Agrofert conglomerate, which is active in farming, food processing, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have consistently stated I will address the ethical issue in accordance with Czech and European laws,” Babiš remarked. “This is not like selling a roll in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts arising from his corporate dealings before assuming the role of premier.

The Czech constitution “explicitly requires the president to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, the presidential administration explained.

The head of state “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was ready to appoint Babiš as premier “immediately” once the matter was settled.

Business Operations and Regulatory Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, function in the nation and other central European states, receiving substantial funds in domestic and European farming and other subsidies, as well as government deals.

Under Czech law, government ministers are barred from obtaining public aid or agreements. The ethics watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, decline government deals, or stay out of public office.

Past Tenure and Current Intentions

Babiš affirmed he would “follow the laws” if selected as prime minister, but declined to detail how in beforehand because the issue was “an highly personal and personal matter for me, and the media will invariably question me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential conflicts of interest. He temporarily moved his holdings into trust funds, while retaining some influence over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to disclose details.

Governing Deal and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if approved, is expected to bolster the populist movement in central and eastern Europe and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state has a role for foreign policy, also demanded that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, including a pledge to meeting alliance duties.

The head of state has previously said he would not approve any cabinet candidates who might question the Czech Republic’s international alliances, a requirement that the far-right SPD has indicated it will satisfy by proposing independent technocrats.