Babiš’s Government Battles EU Plan to Cap Agricultural Subsidies

The European Commission’s proposal targets the very structure of the Common Agricultural Policy, aiming to redirect funds away from industrial-scale farming toward generational renewal and crisis resilience. Brussels intends to implement a strict financial ceiling, limiting annual payments to 100,000 euros per entity. For the Agrofert holding, which currently draws over 1.5 billion CZK annually, this shift represents a direct threat to its bottom line.

Agriculture Minister Martin Šebestyán has emerged as the primary opponent of these reforms. Having previously led an initiative representing large agrarian conglomerates, Šebestyán argues that capping subsidies would destabilize the Czech market, where 85 percent of milk production relies on farms exceeding one thousand hectares. Alongside five other EU ministers, he is lobbying to make the proposed "degressevity"—a system of sliding-scale payment cuts—entirely voluntary for member states. With Babiš holding the power to influence final negotiations, the administration’s push to protect these large-scale operations continues to invite intense scrutiny over his personal ties to the sector.