EU Investigates Czech PM's Past Subsidy Payments

European prosecutors have launched an investigation into EU subsidy payments made to companies once owned by Czech Prime Minister Andrej Babis. Despite transferring ownership to a trust fund, questions remain about potential conflicts of interest and subsidy repayment obligations during his previous term.

European prosecutors have initiated an investigation into EU subsidy payments that went to companies formerly owned by Czech Prime Minister Andrej Babis. News outlet Seznam Zpravy reported that Babis, aged 71, leader of the populist ANO party, had built a conglomerate, the Agrofert group, spanning various industries including agriculture and food processing.

After taking office again last year, Babis transferred the Agrofert conglomerate—recipients of millions in EU agricultural subsidies—to a trust fund governed independently. He has claimed this setup surpasses both Czech and EU conflict-of-interest guidelines. Nevertheless, critics and opposition parties have challenged whether this arrangement truly distances Babis from Agrofert's operations.

The European Public Prosecutor's Office (EPPO) has requested cooperation from Czech police in the ongoing investigation. Although the initiation of the investigation does not imply any criminal activity, it will scrutinize both current subsidy arrangements and analyze if repayment of subsidies, amounting to approximately €300 million, should be pursued for the period when Babis served as prime minister between 2017 and 2021.