European Commission says Agrofert trust fails to resolve Babiš conflict of interest

The trust into which Prime Minister Andrej Babiš placed the Agrofert holding does not resolve his conflict of interest, according to the European Commission. Novinky.cz reported that, in a letter to Czech authorities, the Commission has asked that companies linked to Babiš not receive subsidies over which he could have influence as prime minister.

The state initially pays the subsidies from its own funds and only later seeks reimbursement from the EU budget. Babiš placed Agrofert in a newly established trust, RSVP Trust, in February. The Commission does not consider the arrangement sufficient to resolve the conflict of interest, arguing that Babiš can influence ministers outside government meetings and proposes their appointment and dismissal in his capacity as prime minister.