Babiš’s business empire under fire: EPPO launches inquiry into EU farm subsidies

The European Public Prosecutor’s Office (EPPO) has initiated criminal proceedings into the allocation of European Union subsidies to companies within the Agrofert holding, a major conglomerate closely tied to Czech Prime Minister Andrej Babiš, our partner media Update-eu.cz reported.

This development stems from a criminal complaint submitted in February by the opposition Pirates party, which alleges a persistent conflict of interest involving the prime minister and his business empire. The investigation marks a significant escalation in long-standing concerns about the separation of political power and private commercial interests in the Czech Republic.

Prosecutors are examining not only the payments themselves but also the roles of politicians and public officials who may have facilitated the continued flow of subsidies. A key focus is the Czech authorities’ apparent reluctance to recover funds previously disbursed to Agrofert. According to reports, the EPPO requested assistance from Czech police following a thorough review of the evidence. On 24 May European Prosecutor Daniela Bártíková formally opened the proceedings, entrusting the case to the National Centre for Organised Crime. While the launch of an investigation does not imply guilt or guarantee charges, it signals serious scrutiny of potential damage to the EU’s financial interests.

Babiš, the billionaire and leader of the populist ANO party, has long faced accusations that his extensive business holdings create an inherent conflict while he holds high office. (Babiš has been the prime minister of the Czech Republic since December 2025, having previously served as prime minister from 2017 to 2021. Prior to that, he was the minister of finance and deputy prime minister from 2014 to 2017.)

His empire spans agriculture, chemicals, food production, and other sectors, with Agrofert standing as its flagship. The group receives substantial EU agricultural subsidies annually – tens of millions of euros, raising questions about impartial decision-making in subsidy allocation. In response to earlier criticism, Babiš transferred his Agrofert shares into the RSVP Trust fund in February, asserting that this move fully resolved any conflict under both Czech and European regulations. He has repeatedly maintained that the arrangement exceeds legal requirements.

Political reactions and the limits of national oversight

Czech political figures have responded cautiously to the EPPO’s move. Alena Schillerová, deputy chairwoman of ANO, emphasized that the party would not prejudge the outcome and viewed the investigation as an exercise of proper institutional powers rather than a political matter. She expressed confidence that Babiš had complied with all relevant laws. Meanwhile, the Pirates, who initiated the complaint, highlighted their commitment to safeguarding both EU and Czech taxpayer money. Pirate MP Martin Šmída noted that while the EPPO is addressing the European subsidies portion, Czech authorities have yet to open a parallel probe into national funds. The party has since notified domestic prosecutors accordingly.

The distinction between EU and national subsidies is crucial. The EPPO’s mandate covers only funds affecting the Union’s financial interests, leaving national subsidies to Czech jurisdiction. Under international agreements, however, the EPPO can pursue cases in Czech courts if EU funds are at risk. Officials stress that the proceedings remain preliminary, and no charges have been filed. The Czech government and the EPPO itself have declined to comment publicly on the matter.

The controversy intensified following actions by the State Agricultural Intervention Fund (SZIF), which began re-allocating subsidies to Agrofert companies in late April. This decision followed independent analyses, and the EU subsequently reimbursed approximately 204 million Czech crowns (8.4 million euros) for earlier payments. The European Commission clarified that these related to applications predating Babiš’s return to the prime minister’s office. Some government politicians defended the resumption, citing an operational communication from the Commission’s Directorate General for Agriculture. However, the Commission later stressed that this email addressed technical accounting issues only and did not endorse eligibility or mandate payments.

Responsibility, safeguards, and broader implications

European Commission spokesperson Louise Bogey reiterated that under the shared management system of the Common Agricultural Policy, member states bear primary responsibility for ensuring compliance with EU rules. National authorities decide on resuming payments without needing prior Commission approval, though the Commission retains oversight and can intervene with tools such as payment suspensions or financial corrections if irregularities arise. This framework places significant accountability on the Czech Republic to maintain effective controls against conflicts of interest and irregularities.

The issue has also drawn attention from the European Parliament’s Budgetary Control Committee (CONT), which requested comprehensive information from the Commission on safeguards protecting EU funds. Opposition leaders have criticized the subsidy resumption, urging a halt until reimbursement risks are fully clarified. They warn that any unreimbursed amounts could burden the Czech state budget.

Beyond the immediate legal proceedings, the case touches on deeper questions about governance, transparency, and the influence of powerful business interests in Central European politics. Agrofert remains a cornerstone of the Czech economy. In the previous year, it employed over 28,000 people, including roughly 17,000 in the Czech Republic, making it one of the country’s largest private employers. Its revenues reached 212.2 billion Czech crowns (8.7 billion euro), while consolidated profit stood at 2.2 billion crowns despite a year-on-year decline.

Babiš’s supporters argue that the trust fund arrangement insulates decision-making from personal gain and that the investigation reflects political motivation rather than substantive wrongdoing. Critics, including opposition parties, contend that true separation requires more than formal transfers and that ongoing subsidies undermine public trust in institutions.

The original article from our partner media Update-eu.cz in Czech can be found here.

Caption: Czech Prime Minister Andrej Babis arrives for a dinner at the Elysee Palace for Heads of State and Government of the Volunteer Coalition on the eve of the Bastille Day parade, Paris, France, 13 July 2026. EPA/VALENTINA CAMU