The European Commission is putting the brakes on subsidies for companies linked to Czech Prime Minister Andrej Babiš until conflict of interest allegations are fully cleared up.
“Czech authorities should not report to the European Commission any expenditures related to operations from December 9, 2025, if those operations concern entities within the Agrofert group or any organization controlled by or associated with Andrej Babiš,” wrote Hugo Sobral, a top official in the Commission’s regional policy department, in a letter dated May 20. Obtained by POLITICO, the letter was first reported by news outlet Seznam Zprávy.
“This should remain in effect until the issues are fully clarified,” Sobral added, noting that every payment request submitted to Brussels must include confirmation that the beneficiaries are not Agrofert, SynBiol, Hartenberg Holding or any other companies linked to Babiš.
In practice, that means any subsidies paid to Agrofert would be covered by Czech taxpayers. Czechia’s agricultural paying agency decided last month that the conglomerate is eligible for EU subsidies.
Babiš became prime minister on Dec. 9 after transferring Agrofert into a trust fund in response to conflict of interest allegations. Opposition parties and NGOs argue he has not fully severed ties with the business empire.
“I have resolved the alleged conflict of interest far beyond the requirements of both Czech and European law. I do not own Agrofert,” Babiš told Czech News Agency on Tuesday.
The Commission also asked Czech authorities to provide a detailed legal analysis showing that Babiś’s remedy complies with both Czech and EU rules, giving it a month to do so.
Neither the Commission or Babiš replied to requests for comment.