The European Commission is set to reject calls for an EU-wide ban on fur
farming, opting instead to propose stricter animal-welfare standards for the
sector, according to an internal draft communication seen by POLITICO.
The undated document, setting out Brussels’ long-awaited response to the “Fur
Free Europe” European Citizens’ Initiative, indicates the Commission believes
species-specific welfare rules, rather than prohibition, represent the “most
appropriate follow-up” to the campaign backed by more than 1.5 million EU
citizens.
Animal Welfare Commissioner Olivér Várhelyi is expected to steer the file
through the final stages of internal consultation in the coming days, as the
executive races to meet its self-imposed deadline to outline next steps by the
end of March.
The draft marks a significant setback for campaigners and several member
countries that had hoped the Commission would seize the initiative to phase out
fur farming across the bloc. The citizens’ petition, one of the largest ever
submitted under the EU’s participatory mechanism, triggered a formal legal
obligation for Brussels to assess possible legislative action.
Instead, the Commission’s preliminary conclusion is that outright bans would
carry “significant economic impacts” for the remaining fur-producing regions
while failing to achieve the intended welfare gains if production simply shifts
to third countries.
The draft does not spell out what stricter welfare rules would look like in
practice. The Commission would aim to propose legislation setting EU-wide
standards for mink, foxes, raccoon dogs and chinchillas by the end of 2027.
The document cites changing consumer attitudes as part of its rationale for the
fur trade to continue. It says that buyers who continue to purchase fur
“increasingly place importance” on how animals are treated and on broader
sustainability concerns, suggesting that tougher and more transparent welfare
rules could help shape remaining demand.
But the standards-first approach has not been without resistance inside the
Commission. The plan follows weeks of internal wrangling in Brussels, with some
senior officials pushing to explore a ban. People familiar with the discussions
said the cabinet of Executive Vice President Teresa Ribera ultimately accepted
the standards-based route, while seeking a clearer and potentially faster
legislative timeline.
The decision could still face political headwinds. Several governments are
pressing the Commission for clarity on its intentions, and diplomats say the
issue is likely to resurface at upcoming meetings of EU agriculture ministers.
The Commission’s stance contrasts with the findings of the European Food Safety
Authority, which warned in a 2025 scientific opinion that the cage-based
production systems used in fur farming lead to major welfare problems for
animals. Many of these cannot be substantially mitigated without an overhaul of
the current system, EFSA concluded.
The document also underscores how sharply the sector has already declined. Fewer
than 1,000 fur farms remained active across the EU in 2024, employing roughly
2,000 people, with production increasingly concentrated in a limited number of
member states, including Finland, Greece and Spain.
Tag - Agriculture
Hungary is pressing the European Union to suspend tariffs and extra duties on
fertilizer imports from Russia and Belarus as the war in Iran threatens to drive
up global food prices.
Such a move would boost a key source of revenue in funding Moscow’s war of
aggression against Ukraine.
In a letter to European commissioners on Monday, Hungarian Agriculture Minister
István Nagy warned that rising global fertilizer prices and supply uncertainty
exacerbated by the war in Iran risk squeezing EU farmers and pushing up food
costs.
He called for the levies on Russian and Belarusian products to be temporarily
reduced to zero, warning that Hungary could face lower crop yields if access to
cheaper imports remains restricted. The country produces only nitrogen
fertilizers domestically and relies on foreign supplies of phosphorus and
potash.
The EU tightened duties on fertilizers from Russia and Belarus in 2025 after
imports rose in the years following Moscow’s full-scale invasion of Ukraine. The
increase raised concern that Russia was redirecting gas exports hit by sanctions
into fertilizer production to sustain export revenues.
Russian shipments to the EU were still worth around €2 billion last year, but
volumes fell sharply in early 2026 as the new levies began to bite.
Iran’s effective blockage of the Strait of Hormuz is driving up the cost of
fertilizer by tying up supplies of both the fuel and raw materials needed to
produce it. Budapest is also pushing the EU to relax its ban on Russian gas to
ease price pressures — an idea roundly rejected by Brussels.
Spain on Monday put forward Agriculture Minister Luis Planas as a candidate for
the top job at the U.N.’s Food and Agriculture Organization (FAO).
Spanish Foreign Minister José Manuel Albares announced the decision during his
doorstep at the Foreign Council Affairs in Brussels.
“It is a Spanish candidacy, but one that has a European vocation and also
reflects Spain’s belief in multilateralism and the United Nations, at a time
when food security is absolutely fundamental,” Albares said.
Planas becomes a third European candidate for the post after EU agriculture
ministers agreed at this month’s Brussels summit they should try to unite behind
a single European contender.
Italy has formally nominated former farm minister and current FAO Deputy
Director-General Maurizio Martina, and Ireland backed Phil Hogan, the former EU
griculture and trade commissioner.
Currently leading the Rome-based U.N. agency is Qu Dongyu, a Chinese politician
whose term will end in mid-2027. Formal candidacies to succeed him must be filed
by the end of the year.
Listen on
Ukraine is running out of money to fight Russia — but Hungary still isn’t
budging on its opposition to the EU’s €90 billion loan to Kyiv.
On today’s episode, host Zoya Sheftalovich and Kathryn Carlson, senior finance
reporter, outline some of the contingency plans European countries have up their
sleeves to get Ukraine the funding it needs before it’s too late.
Also on the podcast, POLITICO’s Karl Mathiesen has interviewed Frank Furedi, who
runs MCC Brussels, a think tank linked to Hungarian Prime Minister Viktor
Orbán’s government. The Hungarian-born sociologist argues Europe’s rising
populist right may not be ready for power — Zoya and Kathryn try to understand
why.
Finally, a 350-page report published today by the EU’s climate advisers lays out
recommendations to tackle the carbon footprint of the agriculture sector … but
don’t expect a warm response from farmers.
Do you have questions or comments for our hosts? Send a message or a voice note
to our WhatsApp: +32 491 05 06 29.
**A message from Amazon: Across Europe, businesses are growing with the AWS
Cloud to build innovative, scalable products. From Europe’s largest enterprises
and government agencies to the continent’s fastest growing startups, learn more
about how AWS Cloud is helping businesses across Europe grow at AWS.eu.**
BRUSSELS — Europeans should eat less meat and farms must be taxed for their
planet-warming pollution if the bloc is to reach its climate goals, the EU’s
scientific advisers argue in a set of far-reaching recommendations that are
unlikely to get a warm welcome from farmers.
In a 350-page report published Wednesday, the European Scientific Advisory Board
on Climate Change also calls on the EU to scrap farm subsidies for
climate-damaging practices, arguing sweeping measures are necessary to reduce
agriculture’s contribution to global warming.
To aid farmers, they propose scaling up financial support to help them
transition toward greener alternatives as well as aid to cope with increasing
droughts and climate disasters.
Yet environmental policies that so much as touch on agriculture have become
politically toxic in recent years, with Brussels and EU capitals reluctant to
address farm emissions in the face of large-scale tractor protests and intense
lobbying campaigns.
Still, sticking with business as usual isn’t an option, said the board’s chair
Ottmar Edenhofer.
“In order to achieve carbon neutrality by 2050 within the EU, the sector has to
contribute to emissions reduction,” he said.
“And if we do this in a smart way during the transition process, in a gradual
way, pricing the emissions but also using the revenues to support the transition
… I think this is a beneficial pathway for the whole sector and for the whole of
society.”
While politically sensitive, the board’s recommendations are not revolutionary.
Plenty of scientists and even the World Bank have in recent years urged
governments to ensure their citizens eat less meat and to cut environmentally
harmful subsidies in order to rein in greenhouse gas emissions from food, which
account for about a third of all planet-warming pollution.
And Denmark is on track to become the first country to tax agricultural
pollution after Copenhagen and farmers’ associations agreed in 2024 to impose a
carbon price on livestock emissions from 2030.
Yet the board’s reports carry weight. The independent consortium of scientists
is tasked by EU law with providing guidance on climate policy; past
recommendations have proven influential, with the board’s 2023 advice on setting
a 2040 emissions-slashing target of at least 90 percent playing a major role in
leading the EU to enshrine this goal in law last week.
The entire food system, from farming to consumption to waste management,
produces 31 percent of the bloc’s emissions. | Quentin Top / Hans Lucas / AFP
via Getty Images
The recommendations on agriculture also come just as the EU drafts new policies
that could incorporate some of the board’s advice — from the bloc’s next
long-term budget and an upcoming revision of the EU farm subsidy program, to a
slate of new green legislation designed to meet the new 2040 target, and a plan
to increase resilience to climate disasters.
CAPPING CAP PAYMENTS
The Common Agriculture Policy (CAP), a behemoth that absorbs around a third of
the EU’s budget, is a key target of the report. The current framework contains
provisions around climate and biodiversity, but has failed to sufficiently slash
greenhouse gas emissions.
The entire food system, from farming to consumption to waste management,
produces 31 percent of the bloc’s emissions. More than half of that occurs
during food production — think super-polluting methane released by cows as well
as fertilizer use, tractor fuel and more.
The CAP, the scientists warn, still incentivizes climate-harming practices
through its vast subsidy system. The EU should therefore gradually phase out
payments that are tied to livestock production, a type of income support for
farmers that consumes 5 percent of the current CAP budget, they say.
In fact, they add, the EU should reconsider the entire idea of subsidies based
on farmland size, worth 39 percent of the CAP budget or more than €100 billion,
as they “incentivize agricultural production over other land use” such as
forestry, and thus drive up emissions.
On top of reforming the CAP, the EU should introduce a carbon pricing mechanism
covering agriculture, building on the Emissions Trading System architecture that
has successfully halved industry and power plant pollution, the scientists say.
But they argue that agricultural carbon pricing should consist of three separate
systems — one each for energy-related farm emissions, non-CO2 pollution such as
methane, and agricultural emissions and carbon dioxide removals from land.
The EU also needs to address consumer demand to tackle food emissions, the board
says. In particular, Europeans eat too much red meat, driving up methane
pollution.
The scientists recommend the EU set up national guidelines for climate-friendly
diets and set mandatory standards for marketing and sustainability labeling of
food to push consumers toward greener choices.
CLIMATE-PROOFING FARMS
To sweeten the deal for farmers, the board suggests that with the money saved
from a reformed CAP and generated through carbon pricing, the EU should support
them in the transition toward climate-friendly practices and in adapting to a
warmer world.
Whether the promise of funding would be enough to placate farming lobbies that
have launched massive tractor protests across Europe at any hint of additional
burdens for farmers is uncertain. Political appetite for green legislation has
also declined in both Brussels and capitals amid a shift toward industry- and
security-focused policies.
As part of its Green Deal, the European Commission in 2020 launched a Farm to
Fork Strategy designed to make the bloc’s food system more environmentally
friendly. The plan, however, was effectively abandoned following a backlash from
lobby groups and conservative politicians.
Political appetite for green legislation has also declined amid a shift toward
industry- and security-focused policies. | Marijan Murat/picture alliance via
Getty Images
Only last week, EU institutions struck a deal to ban vegetarian products from
using certain meat-related terms.
But Edenhofer believes that there is political space to enact the board’s
recommendations, pointing to Denmark’s tripartite deal establishing a carbon tax
— an agreement between the government, farmers and environmental groups — as a
hopeful example.
“We acknowledge that this is very complicated, but … we need a regulatory system
which incentivizes emission reductions in the agri-food system,” Edenhofer
insisted.
Governments and lobby groups in Italy, Ireland and Hungary are raising concerns
over the continuing near-standstill in maritime freight transport in the Strait
of Hormuz as the U.S.-Israeli war on Iran escalates.
The strait, a major international waterway for oil, gas and fertilizers, has
been a no-go zone for a week now, after Iran retaliated against a joint
U.S.-Israeli strike and the conflict spilled into the surrounding region.
The narrow stretch of water lies partly in Iranian territorial waters. Tehran
has said the waterway technically remains open but warned that U.S. and Israeli
vessels would be targeted, adding it “cannot guarantee the safety of ships from
all countries.”
“The attack on Iran has opened a Pandora’s box,” Irish Agriculture Minister
Martin Heydon told the Irish Independent, warning that the surge in the price of
fertilizers could hit at the worst time of the year, during planting season. The
Middle East is also an important market for Irish food and drink exports.
Heydon did not rule out government support packages for farms and food
producers, but said it is too soon to talk about it.
The disruption is also raising concerns in Italy, where the largest farmers’
lobby Coldiretti on Tuesday warned that “the disruption of trade routes linked
to the war involving Iran is already causing serious damage to exports.”
“The main concern is the markets of the Middle East, where the total value of
Italian agri-food exports exceeds €2 billion,” Coldiretti wrote in a press
release, adding that particular concern surrounds perishable products like
fruits, vegetables or flowers.
“The halt in maritime traffic in the Gulf comes at the peak of the flower export
season,” added Coldiretti.
Meanwhile, Hungarian Prime Minister Viktor Orbán, whose country goes to the
polls next month, announced Monday that Hungary will renew fuel price caps “to
protect Hungarian families, Hungarian entrepreneurs and Hungarian farmers”
following what he described as an “international oil price explosion.”
BRUSSELS — In the corridors of Brussels, policymakers endlessly debate the
intricacies of the Vision for Agriculture and Food, the urgency of the European
Child Guarantee and the future of the Common Agricultural Policy. Yet the place
where these high-level strategies actually collide, and succeed or fail, is
likely the noisiest room in any building: the school canteen.
This week, as we mark International School Meals Day, we need to stop treating
school food as a mere logistical cost or a side dish to education. Instead, we
must recognize it for what it is: the single most powerful but under-utilized
lever for systemic change.
Beyond the plate: a systemic warning
The statistics are sobering. Today, one in four European adolescents is
overweight or obese, according to the World Health Organization. This is not
merely a matter of individual choice or poverty. This trend is driven by a food
landscape where ultra-processed, low-nutrient options have become the most
accessible and affordable default for almost every family, regardless of
socio-economic background. For many children, school meals are the only reliable
window of high-quality nutrition in a day otherwise dominated by a broken food
system. On the production side, our farmers are protesting for fair incomes,
while the climate crisis demands a shift to sustainable food systems.
It sounds like an impossible knot to untie. But for the past three years, a
growing revolution has been taking place in close to 4,000 schools across 22
European countries, reaching over one million children.
> For many children, school meals are the only reliable window of high-quality
> nutrition in a day otherwise dominated by a broken food system.
Through the EU-funded initiative SchoolFood4Change (SF4C), cities and schools
have gone far beyond updating their menus; they have dismantled the old model
entirely. While thousands have begun transforming how food is sourced, prepared
and valued, more than 850 schools have taken the leap even further by fully
implementing the Whole School Food Approach (WSFA). The results, published by
Rikolto in a new report this week, offer a blueprint for an EU-wide roll-out of
the model.
“Evidence proves the framework works, yet we are currently hitting a
bureaucratic ceiling,” explains Amalia Ochoa, head of sustainable food systems
at ICLEI Europe and coordinator of SF4C. “Healthy school meals combined with
food education represent the most accessible pathway to food system
transformation, directly benefiting the 93 million children and young people
across Europe. By aligning existing initiatives under a coherent framework, the
EU can deliver on its promises to public health and both economic and
environmental sustainability in one integrated approach.”
Breaking the silos
The WSFA works because it shifts the focus from the individual plate to the
entire ecosystem. It recognizes that school meals are not an isolated education
cost, but a powerful crossroads where public health, regional economics and
environmental policy meet.
Credit: LAYLA AERTS
The approach integrates four pillars: meaningful policy leadership; sustainable
procurement (favoring local and organic); hands-on education (gardening and
cooking); and community partnership. When procurement is aligned with regional
sustainability goals, magic happens. Children understand the value of food,
waste less and local farmers gain a stable, predictable market, shielding them
from global market volatility, while simultaneously lowering the long-term
healthcare costs associated with diet-related diseases.
The missing ingredient: it’s not just the food, it’s the people
However, the report reveals a critical bottleneck. The biggest barrier to
scaling this success isn’t necessarily the cost of the ingredients; it is the
lack of dedicated coordination.
> School meals are not an isolated education cost, but a powerful crossroads
> where public health, regional economics and environmental policy meet.
Transformation requires human power. It needs local coordinators who can
navigate the labyrinth between a city’s health department, the procurement
office and the school board. Too often, we fund the infrastructure but forget
the implementation. For the WSFA to become an EU-wide standard, national and
regional authorities need to move beyond project-based thinking. It’s not just
another subsidy; it’s a strategic investment in Europe’s social and ecological
resilience. As Thibault Geerardyn, director at Rikolto Europe, notes in the
report:“The true obstacle to scaling up is institutional, not ideological.
Changes in policy must be embedded in the current system, not merely added to it
as a ‘nice to have’ project.”
The mandate for change: a strategic imperative
As the EU begins implementing its new mandate, school food offers a rare ‘triple
dividend’ that hits every major political target on the Brussels agenda. It
serves as a public health shield, a guaranteed market for local farmers and a
tangible safety net for the European Child Guarantee.
> Systemic change cannot be led by temporary staff or volunteers. The EU can
> make the difference.
However, this potential remains locked as long as school food is treated as a
secondary concern. Systemic change cannot be led by temporary staff or
volunteers. The EU can make the difference. We call on the European Parliament
and Commission to:
1. Standardize quality: establish an EU-wide minimum standard of healthy school
food and education to drive quality upwards across all member states.
2. Fund the coordinators: move away from short-term grants toward long-term
strategic investment in the permanent operational implementation and
coordination needed to guide schools through this transition. You cannot
build a resilient system on temporary project cycles.
3. Connect the dots: create an interdepartmental taskforce. School food is
currently a political orphan, sitting awkwardly between agricultural,
health, youth and social policies. It needs a permanent home in the EU
institutions and a unified strategy.
The revolution is on the menu. We have the recipe. We have the evidence from
more than 850 schools. Now, what’s needed is the political courage to serve it.
Read the full evidence-based report here: “From Pilots to Policy: Evidence from
Three Years of Implementing the Whole School Food Approach in Europe.”
This article has been published with funding from the European Union’s Horizon
2020 research and innovation program under grant agreement No 101036763.
--------------------------------------------------------------------------------
Disclaimer
POLITICAL ADVERTISEMENT
* The sponsor is Rikolto België vzw
* The ultimate controlling entity is Rikolto België vzw
* The political advertisement is linked to encouraging change to European
policy on food systems with calls to action for EU Institutions. Reference to
the Green Deal, the European Child Guarantee, and agricultural reform.
More information here.
Ireland officially nominated former EU agriculture and trade commissioner Phil
Hogan to the top job at the U.N.’s Food and Agriculture Organization (FAO), the
government said today.
Hogan’s name emerged last week as a potential contender for the role of FAO
director, with Ireland’s Department of Agriculture signaling him as their
preferred candidate.
The Irish politician played a significant role pushing forward the Mercosur
agreement during his time as the EU’s farm chief under under Jean-Claude
Juncker, before briefly serving as trade commissioner in Ursula von der Leyen’s
first Commission. He resigned in 2020, after he attended a dinner that breached
Ireland’s coronavirus restrictions in the so-called Golfgate scandal.
Currently leading the Rome-based U.N. agency is Qu Dongyu, a Chinese politician
whose term will end in mid-2027. Italy has formally nominated former farm
minister and current FAO deputy director-general Maurizio Martina.
BRUSSELS — The EU will provisionally implement its trade deal with the South
American Mercosur bloc, European Commission President Ursula von der Leyen
announced Friday, in a move that is likely to trigger a major backlash from
European capitals and lawmakers opposed to the deal.
The deal, to create a free-trade area spanning 720 million people, is
controversial because it hasn’t yet been officially blessed by the European
Parliament. Lawmakers voted last month to send it for review by the Court of
Justice of the European Union, effectively freezing its final ratification for
up to two years.
Implementation could harden opposition in the European Parliament, antagonize
skeptical countries led by France and Poland, and potentially sink the agreement
when it comes to a final consent vote later.
The European Commission received the go-head from EU countries in January to
implement the deal once Mercosur countries complete their own approvals. Both
Argentina and Uruguay ratified the agreement on Thursday.
This is a developing story.
Andrej Babiš built his fortune making fertilizer. But another, lesser-known arm
of his business empire has helped bring more than 170,000 children into the
world across Europe.
The Czech prime minister’s name is rarely attached to FutureLife, one of
Europe’s largest IVF clinic networks, spanning 60 clinics in 16 countries from
Prague to Madrid to Dublin.
But is just one part of a commercial empire that spans nitrogen-based
fertilizers and industrial farms, assisted reproduction, online lingerie stores
and more. And the Czech leader holds this portfolio while sitting at the table
negotiating EU budgets, health rules and industrial policy.
Yet in Brussels, nobody can answer a deceptively simple question: Which of the
companies associated with Babiš receives EU money — and how much?
“We might be giving him money and we don’t even know,” said Daniel Freund, a
German Green lawmaker who led the European Parliament’s inquiries into Babiš
during his first term as Czechia’s prime minister from 2017 to 2021. In 2021,
the Parliament overwhelmingly adopted a resolution condemning Babiš over
conflicts of interest involving EU subsidies and companies he founded.
Under EU rules, member countries are responsible for checking conflicts of
interest and reporting on who ultimately benefits from EU funds. But there is no
single EU-wide register linking ultimate beneficial owners to all EU payments —
making cross-border oversight difficult.
The issue has resurfaced as Babiš returns to power and once again takes a seat
among other EU heads of state and government in the European Council. In that
exclusive body, he helps negotiate the bloc’s long-term budget, agricultural
subsidies and other funding frameworks that shape the sectors in which his
companies might operate.
For years, debates over Babiš’s conflicts of interest have revolved around a
single name — Agrofert, the agro-industrial empire that EU and Czech auditors
found had improperly received over €200 million in EU and national agricultural
subsidies. The payment suspensions and repayment demands continue: This week,
Czech authorities halted some agricultural subsidies to Agrofert pending a fresh
legal review of the company’s compliance with conflict-of-interest rules.
Babiš has consistently rejected accusations of wrongdoing. His office said he
“follows all binding rules” and that “there is no conflict of interests at the
moment,” adding that Agrofert shares are managed by independent experts and that
he “is not and will never be the owner of Agrofert shares.”
In a parliamentary debate earlier this month, he dismissed the controversy as
politically motivated, accusing opponents of having “invented” the
conflict-of-interest issue because they were unable to defeat him at the ballot
box.
But critics argue that the renewed focus on Agrofert obscures a far broader
commercial footprint.
“Agrofert is only half of the problem,” said Petr Bartoň, chief economist at
Natland, a private investment group based in Prague. “The law does not say ‘thou
shalt not benefit from companies called Agrofert.’ It says you must not benefit
from any companies subsidized by or receiving public money.”
The concern, critics argue, arises from the sheer number of companies and
sectors with which Babiš remains associated.
THE INVISIBLE PILLAR
Separate from Agrofert sits Hartenberg Holding, a private-equity vehicle Babiš
co-founded with financier Jozef Janov in 2013. He holds a majority stake in the
fund through SynBiol, a company he fully owns and which, unlike Agrofert, has
not been transferred into any trust arrangement.
With assets worth around €600 million, Hartenberg invests in health care,
retail, aviation and real estate.
Yet it has attracted only a fraction of the scrutiny directed at the
agricultural holding, according to Lenka Stryalová of the Czech public-spending
watchdog Hlídač státu.
“Alongside Agrofert, there is a second, less visible pillar of Babiš’s business
activities that is not currently intended to be placed into blind trusts,” she
said.
That pillar includes FutureLife, whose 2,100 specialists help individuals and
couples conceive across Czechia, Slovakia, the U.K., Ireland, Romania, the
Netherlands, Spain, Italy and Estonia. The clinics operate in a policy-sensitive
space shaped primarily by national health reimbursement systems and insurance
rules, rather than decisions taken directly in Brussels. Those systems, however,
function within a broader EU regulatory framework governing cross-border care
and state aid.
Hartenberg owns 50.1 percent of FutureLife. The company said in a statement that
Babiš has no operational role, no board seat and no decision-making authority.
It added that FutureLife clinics operate like other health care providers and,
where applicable, are reimbursed by national public health insurance systems
under the same rules as other providers.
Like thousands of other companies, some FutureLife entities received
pandemic-era wage support under Czechia’s Covid relief programs. There is no
evidence of any irregularity in those payments.
But health care is only one corner of the portfolio.
Through Hartenberg, Babiš-linked capital also flows into everyday retail life.
Astratex, a Czech-founded online lingerie retailer that began as a catalogue
business before moving fully online in 2005, now operates localized e-shops
across roughly 10 European markets and generates tens of millions of euros in
annual revenue. Hartenberg acquired a controlling stake in 2018, marking one of
the fund’s early expansions into cross-border digital retail.
In Czechia, shoppers may also encounter Flamengo florist stands, a network of
around 200 outlets selling bouquets, potted plants and funeral flower
arrangements inside supermarkets and shopping malls. Hartenberg acquired a
majority stake in the chain in 2019, backing its expansion and push into online
delivery. Other online businesses linked to Babiš include sports equipment, and
wool and textile retailers.
Through Hartenberg, Babiš has also invested in urban development and real
estate.
Hartenberg was an early majority investor in the project company behind Prague’s
Císařská vinice, a premium hillside development of villas and apartments near
Ladronka park, partnering with developer JRD to finance construction.
JRD Development Group said the project company is now 100 percent owned by JRD
and that neither Babiš nor companies linked to him hold any direct or indirect
ownership interest. The firm added that the development has not received EU
funds or other public financial support.
None of the Hartenberg businesses have ever been accused of misusing EU
subsidies.
But the long-running “Stork’s Nest” case, first investigated more than a decade
ago and still unresolved, shows how difficult it can be to follow Babiš’s
business web.
The alleged fraud involved a €2 million EU subsidy provided in 2008 to the
31-room Čapí Hnízdo (Stork’s Nest) recreational and conference center in central
Czechia, then part of Babiš’s Agrofert conglomerate. Prosecutors have accused
Babiš and his associates of manipulating the center’s ownership and concealing
his control of the business in order to obtain the subsidy. Babiš has always
denied wrongdoing, telling POLITICO in 2019 that the case was politically
motivated.
He was acquitted in 2023, but an appeals court later overturned that verdict and
ordered a retrial, which remains pending.
Today, the resort itself is no longer part of Agrofert. It is owned by Imoba, a
company fully controlled by Babiš’s SynBiol, the same holding that controls
Hartenberg. Hartenberg itself holds no stake in Stork’s Nest.
Taken together, Babis’ non-Agrofert portfolio spans health care reimbursement
systems, online retail regulation, aviation safety oversight, real estate and
city-planning decisions across multiple EU jurisdictions.
In theory, a Czech consumer could encounter Babiš-linked companies at nearly
every stage of life: the fertilizer on the fields that grow the wheat, the bread
on the supermarket shelf, the bouquet for the wedding, the apartment in Prague
and even the clinic that helps bring the next generation into the world. And at
the end, perhaps, the flowers once more.
WHY BRUSSELS CAN’T KEEP TRACK
During Babiš’s previous term, the European Commission concluded that trust
arrangements he put in place did not eliminate his effective control over
Agrofert. A leaked legal document reported by POLITICO this month has since
renewed accusations that his latest trust setup does not fully address those
concerns either.
Babiš rejects that interpretation, saying the arrangement complies with Czech
and EU law and insisting he has done “much more than the law required” to
distance himself from the company.
The Commission said it does not maintain a consolidated list of companies
ultimately owned or controlled by Babiš across member countries. Nor does it
hold a comprehensive accounting of EU funds received by companies linked to him
beyond Agrofert.
Instead, responsibility for collecting beneficial ownership data lies primarily
with national authorities implementing EU funds. The Commission can audit how
member countries manage conflicts of interest and take measures to protect the
EU budget if needed, but it does not itself aggregate that information across
borders.
The Commission confirmed to POLITICO that it has asked Czech authorities to
explain how conflicts of interest are being prevented in relation to companies
under Babiš’s control beyond Agrofert.
Czech Regional Development Minister Zuzana Mrázová on Thursday acknowledged
receiving the Commission’s letter earlier this month, saying it will be answered
in line with applicable legislation and adding that, in her view, the prime
minister has done everything necessary to comply with Czech and EU law.
“From my perspective, there is no conflict of interest,” she said.
Freund argues that the corporate complexity has become a problem in its own
right.
“The tracking of beneficial owners or beneficial recipients of EU funds is at
the moment very difficult or sometimes even impossible,” said the EU lawmaker.
Part of the difficulty lies in Europe’s fragmented ownership registers, which
exist on paper across the EU but don’t speak the same language or even list the
same owners.
Freund described them as “inconsistent,” with some national databases listing
Babiš in connection with certain companies while others do not.
Babiš’s defenders argue that his steps regarding Agrofert go beyond what Czech
law strictly requires. Critics counter that the law was never written with
billionaires running multi-sector empires in mind and that resolving the
conflict of interest identified by auditors in relation to Agrofert does not
settle the wider concerns raised by the scale of his business interests.
“For some reason, the perception has been created that once Agrofert is
resolved, that resolves the conflict of interest,” Bartoň said. “As if the
president were the arbiter of what needs and needs not be dealt with.”
In reality, many companies owned through Hartenberg and Synbiol structures
continue to operate in areas shaped by public spending, regulation and political
decisions without being part of any divestment or trust arrangement.
Those assets “still not only [pose] conflict of interest,” said Bartoň, but they
are “not even in the process of being dealt with.”
From fertilizer to fertility to funeral flowers, the structure is easy enough to
trace in everyday life.
It is far harder to trace on paper.
Ketrin Jochecová contributed to this report.