The Czech government has ordered the conglomerate Agrofert, founded by former prime minister Andrej Babiš, to return more than €200 million in subsidies, citing conflicts of interest confirmed by previous EU audits. On August 28, 2025, Prague announced the claim, which includes €4.24 billion crowns in EU agricultural funds and additional national subsidies. The move follows a series of court rulings confirming Babiš’s effective control over Agrofert between 2017 and 2021, despite his formal transfer of ownership to trusts in 2017. Officials said the demand reflects systemic risks for the EU’s Common Agricultural Policy, which disproportionately benefits large landowners.
Legal setbacks and revived fraud case
Babiš faces ongoing legal challenges, including the long-running “Čapí hnízdo” case involving €2.8 million in EU grants. After an initial acquittal in 2023, the Prague High Court in June 2025 overturned the verdict and reopened the trial, reviving criminal liability risks. His reputation was also damaged by the Pandora Papers revelations in 2021, which detailed his purchase of luxury French property through offshore structures, now subject to investigation by French authorities. Although Slovakia’s Supreme Court upheld rulings linking him to the communist-era secret police StB, the Slovak Interior Ministry later declared related records “unfounded,” leaving his legacy controversial and politically toxic.
Media empire and political influence
For years, Agrofert controlled major Czech media outlets, including MAFRA and LONDA, until they were sold in 2023 amid new legal restrictions. Despite the divestment, watchdogs warn of enduring risks of media concentration and political pressure on editorial independence. Observers caution that if Babiš returns to power, Czech media could undergo a restructuring similar to Hungary under Viktor Orbán, where pro-government consolidation reshaped the information landscape.
European alliances and Ukraine policy
Babiš has aligned his ANO party with Hungary’s Fidesz and Austria’s FPÖ in the European Parliament through the “Patriots for Europe” group, which opposes expanded EU defense commitments and advocates a more accommodating stance toward Moscow. His party has pledged to halt Czech participation in joint EU ammunition procurement for Ukraine and to cut arms deliveries if it regains power. This raises concerns in Brussels and Washington over the reliability of Prague’s commitments within NATO, especially after Babiš previously cast doubt on supporting Baltic and Polish allies under Article 5.
Broader implications for EU and NATO
The Agrofert case underscores mounting compliance, legal, and geopolitical risks surrounding Babiš’s return to power ahead of the October 2025 elections. Brussels views the subsidy demand not only as a financial dispute but as a test of the EU’s ability to enforce rule-of-law standards among member states. For Washington, his alignment with Eurosceptic forces and skepticism toward NATO defense commitments could complicate coordination with the Trump administration. The unfolding disputes highlight how conflicts of interest and blurred boundaries between politics and business threaten European unity at a time of heightened security challenges.
