The European Parliament, on Thursday 10 June, called for an end to the conflict of interest case involving Czech Prime Minister Andrej Babiš, who is accused of enriching himself through the EU’s agricultural and cohesion funds (see EUROPE 12727/21).
The Parliament adopted by a large majority (505 votes in favour, 30 against and 155 abstentions), a resolution on this conflict of interest, a text that came from the Parliament’s Committee on Budgetary Control. Seven MEPs of Renew Europe voted against, while the Renaissance delegation abstained. For more details: https://bit.ly/3iwmuss.
MEPs deplore the Czech government’s attempts, in March 2020, to legalise Andrej Babiš’ conflict of interest through ad hoc legislation. They believe that the lack of action by the Czech government to address conflicts of interest has negative consequences for the functioning of national public authorities as well as for compliance with EU legislation.
Putting an end to conflicts of interest. MEPs find it unacceptable that the Czech Prime Minister is still involved in EU funding programmes while continuing to receive EU agricultural payments via the Agrofert group of companies.
They insist that this conflict of interest must be fully resolved, either by ensuring that Mr Babiš no longer has any economic interest in the Agrofert group, or by ensuring that his companies cease to receive EU funding, or by ensuring that the Prime Minister and any other member of his government abstain completely from EU decision-making processes that could directly or indirectly affect the interests of the Agrofert group.
Repayment of funds required. The European Parliament also stresses that Czech citizens and taxpayers should not pay or suffer any consequences arising from the conflict of interest and demands that the Agrofert group reimburse all illegally received subsidies via the EU budget or the Czech national budget.
The Parliament, in adopting an amendment tabled by the EPP, notes that Prime Minister Babiš has been listed in the Czech register of holders as an ‘indirect beneficial owner’ of Agrofert since 1 June 2021 and strongly criticises the statement issued by the Czech Ministry of Justice that Agrofert can continue to receive subsidies despite the fact that Andrej Babiš is listed as a beneficial owner of Agrofert in the country.
The European Parliament further notes that the Czech police have recommended, for the second time, that Prime Minister Babiš be charged in connection with allegations of fraud amounting to approximately €2 million in the ‘Stork Nest’ investigations.
MEPs welcome the announcement that the European Public Prosecutor’s Office will conduct an impartial and factual investigation into the conflict of interest.
‘Rule of law’ conditionality. The Parliament calls on the Commission to assess the situation and Mr Babiš’ influence on the Czech media and the judiciary in order to identify Rule of law violations and, “if its findings confirm this, to activate in due course the conditionality mechanism for the protection of the EU budget”. (Original version in French by Lionel Changeur)