The EU’s antifraud watchdog said it has passed on to prosecutors allegations of potential corruption at the European Economic and Social Committee, a Brussels-based body that advises the EU on proposed legislation and policy.

OLAF, the antifraud office, received a report from whistleblowers earlier this year saying there was a conflict of interest in the management of funds at the EESC, which is financed by the EU. It has now passed the case to the European Public Prosecutor’s Office.

OLAF’s press office told POLITICO it had sent the case to EPPO but added that it could not comment further.

The EPPO did not immediately respond to a request for comment.

“The EESC was informed by OLAF yesterday that this case has been transmitted to the EPPO,” an EESC spokesperson told POLITICO.

“Under these circumstances, the EESC cannot comment further except to re-confirm that when these matters first arose, the EESC president immediately and proactively referred the allegations to OLAF. The EESC will continue to respect fully the independence of this process.” Séamus Boland of Ireland was elected president in October 2025.

“The EESC and its senior leadership take this matter very seriously and remain fully committed to integrity, transparency and accountability,” the spokesperson added.

The EPPO has significantly stronger enforcement powers than OLAF. Whereas OLAF conducts administrative investigations, the EPPO investigates crimes against the financial interests of the EU, and can search private homes or seize evidence.

OLAF has also been investigating a report that EESC executives tried to smoke out a staff whistleblower who raised the alarm about the funding concerns, the EU Ombudsman told POLITICO.

Anonymous letters, seen by POLITICO, say that IT workers at the EESC were asked by senior managers to identify which staffers had connected to the OLAF website in previous weeks.

The EESC said those anonymous letters contained “serious personal threats” and added that they were not made through the EESC’s “robust formal whistleblower process.”

EU leaders meet today for their first chance to beef about the budget face to face.

On the show, Zoya Sheftalovich and Sarah Wheaton dive deeper into why leaders look increasingly unlikely to reach an agreement on the EU’s next money pot by December. Plus, Zoya obtained a document revealing deepening relations between Russia and Slovakia. Will that be a cause for concern around the Council table?

Next up, Zoya spoke with Defense Commissioner Andrius Kubilius on stage yesterday. His main message? Europe should boost its defense capabilities and stop relying so heavily on U.S. military support.

And finally, ECB President Christine Lagarde plugged her upcoming memoir at a press conference … is she allowed to do that? 

If you have a question or comment, don’t hesitate! message us on our WhatsApp here or at +32 491 05 06 29.

Articles mentioned in this episode:

• “How to watch the EU leaders’ summit like a pro.”
• “Slovakia deepening ties with Russia, document shows.”
• “Lagarde’s book plug raises questions about ECB ethics standards.”
• “Weakened Macron and Merz sink hopes of a quick EU budget deal.”

Czech Prime Minister Andrej Babiš’ links to the agro-chemical giant Agrofert represent a conflict of interest and EU subsidies could be withheld as a result, according to an NGO’s account of a letter it received from the European Commission.

Ahead of his return to power in December 2025, Babiš placed Agrofert in a trust fund in an effort to preserve its eligibility for EU farm cash. However, that appears not to have convinced Brussels. Transparency International Czechia quotes a letter from DG AGRI Director-General Elisabeth Werner, confirming that “the Commission concluded that Mr Babiš’ situation constitutes a conflict of interest” under EU financial regulations.

The trust fund and “measures currently being implemented and notified to the Commission are insufficient” to resolve it, she adds, according to the watchdog NGO, which said it was not allowed to publish the letter.

Babiš has been under renewed scrutiny over Agrofert — a large agro-chemical conglomerate and a major recipient of EU funds — as well as other companies since his return to power last year. Babiš placed the company in a trust fund in a bid to avoid a conflict of interest, but the arrangement has raised questions from both the Commission and the Czech opposition, partly because his children would benefit from it after his death.

Babiš has repeatedly denied any wrongdoing. “I don’t own Agrofert, I never will again and I don’t benefit from it in any way. I don’t know what else I’m supposed to do,” he told Czech media last month. “Apparently, even if I shot myself, it still wouldn’t be enough.”

Babiš’ office did not immediately reply to POLITICO’s request for comment about the contents of the letter.

Werner warned in the letter that Brussels would take all necessary steps to protect EU funds, “including the possible interruption of payment deadlines, suspension of payments or application of financial corrections,” according to TI Czechia.

TI Czechia Executive Director David Kotora told POLITICO that he received the letter in September. A follow-up letter from Werner dated Oct. 5 gives the NGO permission to share the contents of the letter without publishing it.

The conflict-of-interest dispute echoes Babiš’ first term as prime minister, when a Commission audit found he still controlled Agrofert. That left Czech taxpayers to foot the bill for EU subsidies deemed to be erroneously paid.

History could now repeat itself as Brussels last month froze €3.18 million in reimbursements to the Czech state for farm subsidies paid out to Agrofert. That followed its earlier May decision that it would not reimburse any paid-out subsidies until doubts about his involvement in the business could be put to rest.

Commission spokesperson Louise Bogey confirmed it had sent a letter to TI Czechia in September, but would not comment on its content. However, she pointed to her remarks at a Sept. 8 midday briefing, during which she said Babiš was in a “potential conflict of interest” and that “the Commission considers the trust fund set up by Mr. Babiš does not sufficiently mitigate this situation.”

Czechia’s agricultural paying agency, which earlier decided that the conglomerate is eligible for EU subsidies despite the Commission’s warning, said Tuesday it had sent clarifications to the Commission this week.

Agrofert spokesperson Pavel Heřmanský said neither Agrofert nor any of its subsidiaries were involved in the communication between the Commission and Czech authorities.

“The cited letter from DG AGRI expresses the opinion of one of the European Commission’s departments. It does not constitute an official position of the European Commission,” said Heřmanský in a statement, adding that “only the Court of Justice of the European Union can provide a binding interpretation of European Union law.”

He added: “We remain convinced that we have received and continue to receive subsidies in compliance with both Czech and European law.”