The measure follows an investigation into a possible conflict of interest involving Babiš. The Commission wants to determine whether his position as head of government is sufficiently separated from his ties to Agrofert. The Czech authorities must provide Brussels with additional information and documents before a final payment decision is made.
The subsidies come from the European Agricultural Fund for Rural Development. The regular European agricultural subsidies to Agrofert are not subject to the suspension. Additionally, Brussels is also withholding certain reimbursements to the Czech Republic from European structural funds linked to Agrofert companies.
Conflict of Interest
At the heart of the dispute is how Babiš legally distanced himself from Agrofert. In February 2026, he transferred his shares to the RSVP Trust. According to Babiš, this sufficiently broke his ties with the conglomerate and eliminates any conflict of interest.
Promotion
Disagreement
The European Commission is unconvinced. Brussels believes that the chosen arrangement does not adequately dispel doubts about a possible conflict of interest. Thus, the Commission and Babiš fundamentally disagree on whether the transfer of Agrofert shares to the trust created sufficient separation.
Babiš dismisses the European objections. He says he no longer owns Agrofert, will never own the conglomerate again, and gains no financial benefit from it. He has also clearly indicated little interest in further discussion regarding the European evaluation.
Issue Has Been Ongoing
The matter concerning Babiš and Agrofert has been ongoing for some time. Member of the European Parliament Daniël Freund points out that the possible conflict of interest was also an issue during Babiš’ previous premiership. According to Freund, Brussels also withheld certain European reimbursements in 2020 due to Babiš's ties to his businesses. Daniel Freund is a German Green Party MEP who has served in the European Parliament since 2019.
For now, this does not amount to a complete halt of European agricultural support to Agrofert. The Commission is withholding specific reimbursements to the Czech Republic while it continues its investigation. The Czech authorities have announced full cooperation and the provision of the requested additional information to Brussels.