EU Probes Czech PM's Former Companies Over Subsidies

European prosecutors have launched an inquiry into EU subsidy payments to businesses previously owned by Czech Prime Minister Andrej Babis. Allegations relate to Babis' business empire, Agrofert, which was transferred to a trust fund. The investigation, prompted by a political petition, examines current and past funding practices.

European prosecutors have initiated an investigation into EU subsidy payments to companies once owned by Czech Prime Minister Andrej Babis, according to news outlet Seznam Zpravy. Babis, leading the populist ANO party, previously managed a vast business empire spanning multiple industries, including agriculture and food processing.

Upon returning to office last year, he transferred his substantial Agrofert holdings, recipients of millions in EU agricultural subsidies, to a trust fund. This move, Babis asserts, exceeds both Czech and EU conflict-of-interest rules. The European Public Prosecutor’s Office is working with Czech police to further the investigation.

The inquiry does not suggest any immediate wrongdoing and might not lead to charges. Despite criticism from opposition parties questioning the adequacy of the trust arrangement, Finance Minister Alena Schillerova remains confident that Babis has met necessary conflict-of-interest regulations.