Czech Prime Minister Andrej Babiš’ links to the agro-chemical giant Agrofert represent a conflict of interest and EU subsidies could be withheld as a result, according to an NGO’s account of a letter it received from the European Commission. Ahead of his return to power in December 2025, Babiš placed Agrofert in a trust fund in an effort to preserve its eligibility for EU farm cash. However, that appears not to have convinced Brussels.
Transparency International Czechia quotes a letter from DG AGRI Director-General Elisabeth Werner, confirming that “the Commission concluded that Mr Babiš’ situation constitutes a conflict of interest” under EU financial regulations. The trust fund and “measures currently being implemented and notified to the Commission are insufficient” to resolve it, she adds, according to the watchdog NGO, which said it was not allowed to publish the letter. Babiš has been under renewed scrutiny over Agrofert — a large agro-chemical conglomerate and a major recipient of EU funds — as well as other companies since his return to power last year.
Babiš placed the company in a trust fund in a bid to avoid a conflict of interest, but the arrangement has raised questions from both the Commission and the Czech opposition, partly because his children would benefit from it after his death. Babiš has repeatedly denied any wrongdoing. I don’t know what else I’m supposed to do,” he told Czech media last month.
Werner warned in the letter that Brussels would take all necessary steps to protect EU funds, “including the possible interruption of payment deadlines, suspension of payments or application of financial corrections,” according to TI Czechia.TI Czechia Executive Director David Kotora told POLITICO that he received the letter in September. A follow-up letter from Werner dated Oct. 5 gives the NGO permission to share the contents of the letter without publishing it. The conflict-of-interest dispute echoes Babiš’ first term as prime minister, when a Commission audit found he still controlled Agrofert.
That left Czech taxpayers to foot the bill for EU subsidies deemed to be erroneously paid.History could now repeat itself as Brussels last month froze €3.18 million in reimbursements to the Czech state for farm subsidies paid out to Agrofert. That followed its earlier May decision that it would not reimburse any paid-out subsidies until doubts about his involvement in the business could be put to rest. Commission spokesperson Louise Bogey confirmed it had sent a letter to TI Czechia in September, but would not comment on its content.
However, she pointed to her remarks at a Sept. 8 midday briefing, during which she said Babiš was in a “potential conflict of interest” and that “the Commission considers the trust fund set up by Mr. Babiš does not sufficiently mitigate this situation.”Czechia’s agricultural paying agency, which earlier decided that the conglomerate is eligible for EU subsidies despite the Commission’s warning, said Tuesday it had sent clarifications to the Commission this week.Agrofert spokesperson Pavel Heřmanský said neither Agrofert nor any of its subsidiaries were involved in the communication between the Commission and Czech authorities. It does not constitute an official position of the European Commission,” said Heřmanský in a statement, adding that “only the Court of Justice of the European Union can provide a binding interpretation of European Union law.” He added: “We remain convinced that we have received and continue to receive subsidies in compliance with both Czech and European law.”
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