Czech Agency Rules Babiš-Linked Agrofert Eligible for EU Subsidies Despite Ongoing Conflict of Interest Dispute

Agrofert, a company tied to Prime Minister Andrej Babiš, is eligible to receive EU subsidies after a Czech government agency gave its blessing Wednesday. By placing the agricultural conglomerate in a trust fund, Babiš successfully eliminated a conflict of interest as defined by existing rules, the farm payment agency, SZIF, announced. The decision drew immediate criticism from opposition politicians, private farmers and watchdog groups. Only the European Commission can make the call about conflict of interest, said Transparency International Czechia, accusing Prague of a strategy of "delay and downplaying." The RSVP trust fund, created to satisfy President Petr Pavel's condition for Babiš's formal return as prime minister, came under renewed scrutiny after a leaked legal document suggested that he did not fully cut his ties. The Commission is still evaluating whether Prague has taken adequate steps to sever Babiš's links to a major recipient of EU funds. The head of SZIF, Petr Dlouhý, said he's satisfied. "Following the legal assessment, I conclude that the trust fund RSVP Trust meets the conditions ... within the meaning of the conflict of interest legislation," Dlouhý said. The agency will process new funding applications and will not seek to recover entitlement-based farm subsidies paid to Agrofert between 2017 and 2021, during Babiš's previous tenure as prime minister. At the time, Babiš also placed Agrofert into trust structures, but in 2021, Czech courts and the European Commission concluded he still retained influence over the company, breaching EU conflict-of-interest rules. Critics are calling on SZIF to publish the legal assessment.