The European Commission has written to the Czech government seeking information on measures to prevent conflicts of interest in EU subsidies connected to Prime Minister Andrej Babis and his business empire, notably Agrofert.

Concerns extend to entities outside the core trust tied to Babis, including an investment fund running fertility clinics and other diverse firms, to ensure they are not improperly benefiting from EU funds.

Reportage from Devdiscourse, with agency inputs, notes that Prime Minister Babis has provided comments and that more details are included in the article.

Brussels is examining a plan to move Babis’s shares in Agrofert into a special trust and is seeking further legal analysis of this arrangement.

He argues the restructuring was designed to meet regulatory requirements and that he does not gain politically or financially from Agrofert.

The Commission has advised Czech authorities not to seek EU subsidy reimbursements for affected ventures until the matter is resolved, warning of potential budgetary impacts for the Czech state.

The development underscores ongoing EU oversight of governance and subsidy-related conflicts involving a high-profile political figure and his business empire.

Agrofert comprises about 230 companies across Central Europe in sectors including fertilisers, plastics, biofuels, farming, food processing, and retail.

Czech authorities are being asked to provide detailed legal explanations or guarantees on safeguards, with the Commission delaying repayment discussions until issues are clarified.

The inquiry highlights Brussels’ ongoing efforts to clarify how political leadership aligns with subsidy rules and corporate arrangements, reflecting the complexity of the issue.

The group employs roughly 30,000 people across its Central European footprint.

Babis maintains that he has complied with both Czech and European law, that he no longer owns Agrofert, and that he will not benefit from it now or after leaving politics.