Brussels Reviews Babis Conflict-of-Interest Case Over EU Funds

The European Commission has asked the Czech government for additional information on measures intended to prevent conflicts of interest involving EU subsidies linked to companies connected to Prime Minister Andrej Babis’s business empire, Czech media outlets iRozhlas.cz and Seznam Zprávy reported.

According to the reports, Brussels is seeking further legal analysis of Babiš’s plan to place his shares in the Agrofert conglomerate into a separate trust. The Commission also wants assurances that companies tied to the prime minister outside the trust structure are not receiving EU funds.

Media reports say the Commission has advised Czech authorities not to request reimbursement from the EU budget for subsidies granted to the companies in question until the matter is resolved. Should Brussels ultimately refuse reimbursement, the Czech state would have to cover the costs itself.

Babis, who previously served as prime minister between 2017 and 2021, announced in December that he would transfer Agrofert into an independently managed trust. Czech courts and European institutions have previously concluded that he was in a conflict of interest.

(reuters, bak)