Former Czech Prime Minister Andrej Babiš faces renewed criminal proceedings after Prague’s High Court overturned his acquittal in a €2 million EU subsidy fraud case, directing the lower court to retry him and his co-defendant, MEP Jana Nagyová, according to Euractiv.
The ruling, issued on Monday, determined that the Prague Municipal Court had not evaluated the evidence properly when clearing the pair of wrongdoing in February 2024, marking the second annulment of an acquittal in the long-running Čapí Hnízdo (Stork’s Nest) case.
The prosecution contends that Babiš and Nagyová orchestrated a scheme to secure EU development funds intended for small and medium-sized businesses by fraudulently disguising the ownership of the Čapí Hnízdo conference centre.
Investigators allege the property was temporarily transferred from Babiš’s Agrofert conglomerate, a sprawling entity controlling 250 companies, to family members to meet grant criteria. After obtaining approximately €2 million in subsidies, ownership reverted to Agrofert.
High Court Judge Eva Brázdilová asserted both defendants “were aware of the farm’s ties to the Agrofert group,” rendering it subsidy-ineligible. She dismissed Babiš’s claim that relatives independently managed the facility as “entirely ruled out,” noting Nagyová provided false information classifying it as a small business.
Political context and fallout
The ruling lands months before Czechia’s October parliamentary election, where ANO dominates polls at 31–32% support, compared to 20% for Prime Minister Petr Fiala’s ruling SPOLU coalition. Government figures immediately seized on the verdict, with Foreign Minister Jan Lipavský warning that Babiš’s potential premiership threatens European security.
Babiš’s political resilience remains formidable despite ongoing controversies. His party capitalised on public fatigue with Fiala’s government, which recently survived a no-confidence vote linked to a bitcoin scandal.
The Stork’s Nest affair underscores persistent corruption challenges in Czechia. Transparency International’s 2024 report ranked the country 46th globally in perceived public-sector integrity, noting stalled anti-corruption reforms under Fiala.
The case also illuminates the EU’s limited tools to address subsidy misuse by politically connected figures. OLAF, the EU’s anti-fraud office, concluded its investigation in 2017, identifying irregularities but leaving prosecution to national authorities.
