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

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn vote but lacked a parliamentary majority, stated in a social media post that he would not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

“I have consistently stated I will never sell Agrofert. I have repeatedly said I will resolve the ethical issue in compliance with Czech and EU regulations,” Babiš commented. “This is different from selling a roll in a bakeshop.”

President's Demand

The head of state, Petr Pavel, stated that the elderly political figure must publicly explain how he will remove ethical conflicts arising 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 ethical issue and the ways to address it” when selecting government ministers, the presidential administration noted.

The president “wants it to be clear in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to designate Babiš as prime minister “without delay” once the issue was resolved.

Business Operations and Legal Issues

Babiš's numerous companies, primarily under the Agrofert group, function in the Czech Republic and other regional countries, benefiting from substantial funds in national and EU agricultural and other grants, as well as government deals.

Under national legislation, cabinet members cannot obtaining state support or contracts. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, refuse public contracts, or not enter public office.

Previous Tenure and Current 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 highly personal and personal matter for me, and the media will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an European inquiry over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A court and the EU executive both ruled that this did not suffice. Babiš stated recently that he was once more the sole owner of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but refused to disclose details.

Governing Agreement and Foreign Policy Consequences

The wealthy politician has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if confirmed, is likely to strengthen the populist movement in the region 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 shares responsibility for international relations, also requested that the government agenda add a declaration on the official stance on the conflict in Ukraine, including a commitment to fulfilling Nato obligations.

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