EU Suspends Subsidy Payments to Czech PM Babis' Former Conglomerate
EU halts €3 million in subsidies to Czech PM Babis' Agrofert group, citing insufficient conflict-of-interest safeguards.
The European Commission has suspended certain subsidy payments to Agrofert, the sprawling conglomerate formerly owned by Czech Prime Minister Andrej Babis, citing a potential conflict of interest that the premier's trust arrangement has not adequately resolved.
The Commission's spokesperson said the trust fund established by Babis does not sufficiently separate him from the company's management, particularly regarding cohesion policy and agricultural funds. The decision does not affect automatic direct payments to farmers.
Agrofert, which manages roughly 130,000 hectares and is also a major European fertilizer producer, has received millions of euros in EU farm and structural support. The Czech farm aid administrator SZIF confirmed that payments of €3 million have been interrupted pending further investigation.
Babis dismissed the EU's stance, asserting he no longer owns Agrofert and derives no benefit from it. The company maintains it complies with all legal requirements.
This is not the first such finding against Babis; an earlier EU audit during his 2017-2021 term also identified a conflict of interest. The prime minister retains significant business interests outside Agrofert, including health clinics across Europe.