Prague – Czech Prime Minister-designate Andrej babiš has announced plans to divest his ownership of the Agrofert holding company, a move intended to address a conflict of interest and secure his appointment to office. The decision follows weeks of scrutiny after Babiš’s ANO party won October’s parliamentary elections, and comes after direct discussions with President Petr Pavel regarding concerns about potential conflicts of law regarding state subsidies . Pavel is expected to formally appoint Babiš as Prime Minister on Tuesday,December 9th.
Czech Prime Minister-designate Andrej Babiš announced he will divest from Agrofert, the sprawling holding company he solely owned, in a move intended to resolve a conflict of interest. The decision comes after his party, ANO, won recent parliamentary elections, and as he prepares to take office.
Babiš stated he will have no further connection to Agrofert, even after leaving politics, and will not regain ownership of the company. “With this, I have fulfilled the condition set by the President for my appointment as Prime Minister,” Babiš said in a video posted on Facebook. According to the Czech News Agency (MTI), Babiš explained that Agrofert’s shares will be managed through a trust by an independent individual, overseen by another independent party, and ultimately inherited by his children after his death.
Czech President Petr Pavel swiftly responded to the announcement, stating he would appoint Babiš as Prime Minister on Tuesday, December 9th, at 9:00 AM. “I welcome the clear and understandable way in which Andrej Babiš has fulfilled our agreement and publicly explained how he resolves the conflict of interest,” Pavel wrote on X. “I am therefore proceeding with respecting the results of the lower house elections and the course of negotiations to form a coalition government.”
The move addresses concerns over Czech laws prohibiting government officials from owning companies eligible for state subsidies. Pavel had previously requested Babiš publicly clarify how he would separate his public duties from his private interests, specifically those of the Agrofert conglomerate. Babiš had previously maintained he would not sell Agrofert, but appears to have reconsidered in light of the impending premiership.
Parliamentary elections were held in the Czech Republic in early October, with Babiš’s ANO party emerging victorious. ANO is also affiliated with the European Parliament’s Patriot’s for Europe (PfE) group, aligning Babiš with Hungarian Prime Minister Viktor Orbán. This alliance could position Babiš as a key ally for Orbán within the EU Council, potentially influencing ongoing proceedings related to Article 7 disciplinary measures against Hungary. Further analysis of the implications for Orbán can be found here.
