MEPs at the European Parliament have called for the European Commission to publish the final beneficiaries of CAP money and to put in place a limit on direct payments per person.
MEPs have called on the Commission to set up mechanisms to prevent conflicts of interest related to EU funds as an investigation into a conflict of interest regarding the Czech prime minister Andrej Babiš and EU subsidies continues.
In a resolution, adopted on Friday by 510 votes in favour, 53 against and 101 abstentions, the European Parliament deplores that the Czech prime minister continues to be actively involved in implementing the EU budget while still allegedly controlling Agrofert, which is one of the largest beneficiaries of EU subsidies in Czechia.
Solution
MEPs insist that those confirmed to be involved in these cases at the highest level of national governments have to choose among three possible ways to resolve this.
“They can give up their business interests, refrain from applying for EU funding or abstain from decisions that concern their interests, including ultimately by resigning from public duty,” MEPs have said.
The European Parliament also condemns use of “defamatory language and hate speech” used by Babiš against MEPs who were part of the fact-finding mission to Czechia in February 2020 to follow up on reported irregularities in management of EU funds.
Monika Hohlmeier of the EPP party and chair of Parliament’s budgetary control committee said: “If the conflict of interest of the Czech prime minister is confirmed, he has to remove his business interests by giving up control over any company receiving EU subsidies, refrain from participating in decisions that impact subsidies received by any company where he is the final beneficiary, or ultimately, step down as a prime minister.
“Alternatively, any company under his beneficial ownership should cease to receive EU subsidies concerned by the alleged conflict of interest.
“We also call on the EU and the member states to do more to protect EU taxpayers’ money from oligarchic manipulations. The existing mechanisms are apparently insufficient,” Hohlmeier said.
Background
The Commission’s formal investigation into the Czech prime minister’s conflict of interest has been ongoing since January 2019.
In November 2019, all payments from the EU budget to companies directly or indirectly owned by Babiš were suspended.
In December 2019, the Czech prosecutor-general re-opened the investigation into misuse of EU funds by one of the Agrofert group’s sub-projects, Stork’s Nest. The investigation was originally opened following the report by the EU fraud watchdog OLAF.
Agrofert group is a conglomerate of over 230 companies, with over 34,000 employees. Babiš established the Agrofert Group and allegedly still is its beneficial owner, according to the European Parliament.
The group has been one of the largest beneficiaries of EU subsidies. MEPs say it has received in the region of €36.5m in agricultural subsidies for 2018 alone and a further €16m from EU Cohesion Funds over the period 2014-2020.
Currently, no EU law obliges a member state to disclose the final beneficiaries of EU funds.
Read more
CAP payments expose ‘obscene inequalities’ in agriculture – Carty
€11m in farm payments move west
CAP's big winners: Teagasc, meat factories and stud farms
MEPs at the European Parliament have called for the European Commission to publish the final beneficiaries of CAP money and to put in place a limit on direct payments per person.
MEPs have called on the Commission to set up mechanisms to prevent conflicts of interest related to EU funds as an investigation into a conflict of interest regarding the Czech prime minister Andrej Babiš and EU subsidies continues.
In a resolution, adopted on Friday by 510 votes in favour, 53 against and 101 abstentions, the European Parliament deplores that the Czech prime minister continues to be actively involved in implementing the EU budget while still allegedly controlling Agrofert, which is one of the largest beneficiaries of EU subsidies in Czechia.
Solution
MEPs insist that those confirmed to be involved in these cases at the highest level of national governments have to choose among three possible ways to resolve this.
“They can give up their business interests, refrain from applying for EU funding or abstain from decisions that concern their interests, including ultimately by resigning from public duty,” MEPs have said.
The European Parliament also condemns use of “defamatory language and hate speech” used by Babiš against MEPs who were part of the fact-finding mission to Czechia in February 2020 to follow up on reported irregularities in management of EU funds.
Monika Hohlmeier of the EPP party and chair of Parliament’s budgetary control committee said: “If the conflict of interest of the Czech prime minister is confirmed, he has to remove his business interests by giving up control over any company receiving EU subsidies, refrain from participating in decisions that impact subsidies received by any company where he is the final beneficiary, or ultimately, step down as a prime minister.
“Alternatively, any company under his beneficial ownership should cease to receive EU subsidies concerned by the alleged conflict of interest.
“We also call on the EU and the member states to do more to protect EU taxpayers’ money from oligarchic manipulations. The existing mechanisms are apparently insufficient,” Hohlmeier said.
Background
The Commission’s formal investigation into the Czech prime minister’s conflict of interest has been ongoing since January 2019.
In November 2019, all payments from the EU budget to companies directly or indirectly owned by Babiš were suspended.
In December 2019, the Czech prosecutor-general re-opened the investigation into misuse of EU funds by one of the Agrofert group’s sub-projects, Stork’s Nest. The investigation was originally opened following the report by the EU fraud watchdog OLAF.
Agrofert group is a conglomerate of over 230 companies, with over 34,000 employees. Babiš established the Agrofert Group and allegedly still is its beneficial owner, according to the European Parliament.
The group has been one of the largest beneficiaries of EU subsidies. MEPs say it has received in the region of €36.5m in agricultural subsidies for 2018 alone and a further €16m from EU Cohesion Funds over the period 2014-2020.
Currently, no EU law obliges a member state to disclose the final beneficiaries of EU funds.
Read more
CAP payments expose ‘obscene inequalities’ in agriculture – Carty
€11m in farm payments move west
CAP's big winners: Teagasc, meat factories and stud farms
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