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

Position on Business Holdings

Babiš, whose political movement emerged victorious in the October election but lacked a majority in parliament, stated in a online statement that he will not divest his Agrofert group, which is active in farming, food production, and chemical industries.

“I have consistently said I will never sell Agrofert. I have repeatedly said I will resolve the conflict of interest in compliance with Czech and European laws,” the billionaire remarked. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will remove conflicts of interest arising from his business activities before being appointed premier.

The national charter “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting government ministers, the presidential administration noted.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement said, stating that Pavel was prepared to appoint Babiš as prime minister “immediately” once the matter was settled.

Business Operations and Legal Issues

Babiš's numerous firms, primarily under the Agrofert umbrella, operate in the nation and other regional states, receiving substantial funds in national and EU farming and other grants, as well as government deals.

Under Czech law, cabinet members cannot receiving state support or agreements. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or stay out of government.

Past Tenure and Present Intentions

Babiš said he would “abide by the laws” if selected as premier, but declined to explain how in advance because the issue was “an extremely sensitive and private affair for me, and the media will always criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over possible conflicts of interest. He placed his holdings into fiduciary arrangements, while keeping some influence over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to reveal specifics.

Governing Agreement and Foreign Policy Consequences

The billionaire populist has signed a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if approved, is expected to strengthen the populist bloc in central and eastern Europe and could challenge backing from Western nations for Ukraine – although Babiš has called 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 add a declaration on the government’s position on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.

The head of state has previously stated he would not approve any ministerial nominees who might doubt the Czech Republic’s international alliances, a requirement that the ultra-conservative party has said it will meet by proposing independent technocrats.