Pavel to appoint Babiš as PM ending conflict-of-interest deadlock

President Petr Pavel is set to appoint ANO chairman Andrej Babiš as prime minister on Tuesday, Dec. 9, at 9 a.m., following Babiš’s public announcement that he will divest from his business empire to resolve longstanding conflict of interest concerns.

The appointment comes after weeks of negotiations following the October parliamentary elections, during which Pavel insisted Babiš address his ownership of Agrofert, a giant chemical, agricultural, and food holding.

Babiš announced in a video on Thursday that he will permanently relinquish control of the company through a trust structure managed by independent administrators, with the holding only passing to his descendants after his death.

“I appreciate the clear and understandable way in which Andrej Babiš has lived up to our agreement and publicly announced the way in which he will resolve his conflict of interest,” Pavel said on the X social media platform.

The resolution marks a significant moment for Czech politics, as conflict-of-interest allegations have shadowed Babiš throughout his political career. His willingness to permanently divest from Agrofert removes a major obstacle to government formation and sets a precedent for how business figures navigate the transition to political leadership in the Czechia.

Pavel had emphasized from the outset that the future prime minister must clearly announce how he would resolve the conflict in compliance with Czech law. The Presidential Office noted that while the president cannot serve as the arbiter of the chosen solution, Pavel views Babiš’s announcement as a public commitment to the Czech people.

According to Babiš’s video statement, the trust structure will feature both an independent administrator to manage Agrofert’s shares and an independent protector to provide oversight. Both positions will be appointed by an independent third party, creating multiple layers of separation between Babis and the company he built.

Babis stated the arrangement goes “far beyond the requirements of the [conflict of interest] regulations,” signaling his intent to address critics who have long questioned whether a wealthy businessman could effectively serve as prime minister while maintaining business interests.

The Presidential Office said Pavel considers the implementation process equally crucial as the announced solution, suggesting continued scrutiny of how the divestment unfolds.

The appointment ceremony will formally conclude the political deadlock and enable the finalization of coalition negotiations, paving the way for the formation of a new Czech government.