European Commission freezes €3.2 million in Agrofert payments over Babiš conflict of interest

The European Commission has officially confirmed that it has suspended part of the EU fund payments to companies within the Agrofert holding, previously owned by Czech Prime Minister Andrej Babiš. The reason cited is a persisting potential conflict of interest, despite the transfer of the holding into the RSVP Trust.

In February, in an effort to resolve the conflict of interest, Babiš placed Agrofert into the newly created RSVP Trust. However, according to a letter from the European Commission, this move has been deemed insufficient. One of the main reasons is that the trust's potential beneficiaries include Babiš's own descendants.

What the letter from Brussels says

The letter, sent by EU Budget Commissioner Piotr Serafin to the Chair of the European Parliament's Budget Committee, Andreas Schwab, states: "the measures currently in place, which have been communicated to the Commission, are not sufficient to resolve the conflict of interest."

According to the European Commission, the problem lies in the fact that the trust's potential beneficiaries are Babiš's children, while the prime minister himself is well acquainted with the trust's portfolio and retains the ability to influence it through a family council made up of the trust's beneficiaries. As a result, the EU executive body believes that the Czech premier's personal interest has not been eliminated by the trust arrangement.

Over €3 million frozen

Earlier, a Commission spokesperson declined to disclose the exact amount of the suspended payments, but the letter now reveals the figure. The Directorate-General for Agriculture has suspended payments totaling €3,175,886.40 for six months, declared in the second quarter under the Rural Development Programme (EAFRD). The suspension concerns Agrofert and related entities that could have been affected by the conflict of interest.

The letter notes that the review covers not only Agrofert and its subsidiaries in Czechia, but also possible subsidiaries in other EU member states and beyond. In addition, the European Commission is requiring Czech authorities to state, in all future applications for reimbursement from EU funds, that certified expenses are not linked to operations or grants provided since December 9, 2025, to companies within the Agrofert group, SynBiol, Hartenberg Holding, or any other entities owned, controlled by, or affiliated with Andrej Babiš.

Reaction from politicians and Babiš

The prime minister himself insists that he does not own Agrofert and has stated that the European Commission's stance on his conflict of interest does not concern him. Agrofert itself maintains that the holding has acted fully in accordance with the law.

The Czech opposition, on the other hand, believes that Babiš has misled both the president and the country's citizens. Tomáš Zdechovský, a member of the European Parliament's Budget Committee, said: "With this letter, the Commission is clearly stating that Prime Minister Babiš has not properly resolved his conflict of interest. Czechia stands to lose even more money."

Source: novinky.cz