European Union may withhold subsidies to the Czech Republic
23:41
Not only Poland may be deprived of EU support. The European Commission has warned that it may stop the flow of EU funds to the Czech Republic if the government in Prague fails to take steps to strengthen the anti-corruption system, as reported by radio iROZHLAS.
Last week, the EC sent a letter to the ministries of industry, trade, finance, and regional development.
Prague is involved in a dispute with the Commission over a conflict of interest regarding Prime Minister Andrej Babiš. The Agrofert holding, controlled by the head of the government, is a major beneficiary of EU funds. Babiš himself does not agree with the concerns of the European Commission, which he accuses of politicizing.
In a six-page letter, the two Commission Directors-General urge the Czech authorities to report on the measures they have implemented to improve the functioning of the EU budget's distribution system. If the Czech Republic does not improve control over the spending of EU money, the European Commission may suspend payments partially.
The Czech Ministry of Regional Development, one of the authorities supervising the allocation of funds from the EU coffers, has already announced a meeting with representatives of other ministries. The ministries are to jointly consider specific changes in the distribution system of EU funds to counteract conflicts of interest.
