Tag - Agriculture

EU to reject fur-farming ban despite enormous petition
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.
Agriculture
Agriculture and Food
Sustainability
Animal welfare
Animal disease
Hungary presses EU to scrap tariffs on Russian and Belarusian fertilizers
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.
Energy
Agriculture
Agriculture and Food
War in Ukraine
Tariffs
Spanish Agriculture Minister Planas enters race to lead UN food agency
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.
Agriculture
Agriculture and Food
Food security
Europe’s plan to keep Ukraine afloat
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.**
Energy
Foreign Affairs
Agriculture
Politics
War in Ukraine
EU climate advisers say eat less meat and tax farm emissions
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.
Energy
Agriculture
Agriculture and Food
Sustainability
Biodiversity
EU countries raise alarm over Strait of Hormuz blockade
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.”
Middle East
Agriculture
Farms
Agriculture and Food
Trade
OPINION: To fix Europe’s food system, start with the school lunch
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.
Agriculture
Agriculture and Food
Procurement
Markets
Investment
Ireland backs ex-commissioner Hogan’s bid to lead UN food agency
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.
Mercosur
Agriculture
Agriculture and Food
Human rights
Trade
Brussels implements EU-Mercosur trade deal
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.
Mercosur
Agriculture
Agriculture and Food
Parliament
Regulation
IVF, lingerie and funeral flowers: The lesser-known businesses of Czech PM Andrej Babiš
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.
Agriculture
Agriculture and Food
Budget
Regulation
Courts