BETA


2018/2975(RSP) Resolution on conflicts of interest and the protection of the EU budget in the Czech Republic

Progress: Procedure completed

Legal Basis:
RoP 132-p2

Events

2018/12/13
   EP - Results of vote in Parliament
2018/12/13
   EP - Decision by Parliament
Details

The European Parliament adopted 434 votes to 64 with 47 abstentions a resolution on conflicts of interest and the protection of the EU budget in the Czech Republic.

The resolution was tabled by the EPP, ECR, and Greens/EFA groups.

Parliament stated that it was deeply concerned about the Czech Republic’s non-compliance with the EU’s Financial Regulation regarding the conflict of interest of the Czech Prime Minister and his links to the Agrofert Group , and it urged the Commission to recover all funds that have been illegally or irregularly paid out.

The resolution stems from the formal complaint lodged by Transparency International Czech Republic on 19 September 2018, claiming that the Czech Prime Minister, Andrej Babiš, had persistently violated EU and Czech law on conflicts of interest. Mr Babiš has been revealed to be the beneficial owner of Agrofert, the controlling company of the Agrofert Group, including among others a number of important Czech media outlets, through trust funds AB I and AB II of which he is the founder and, at the same time, the sole beneficiary.

Parliament noted that companies belonging to the Agrofert Group (i) take part in projects funded by the European Agricultural Fund for Rural Development; (ii) have received significant sums from the European Structural and Investment Funds during the 2014-2020 period, ranging from EUR 42 million in 2013 to EUR 82 million in 2017.

It further noted that on 1 December 2018, European media outlets such as The Guardian, Le Monde, De Standaard and the Süddeutsche Zeitung published information about the legal opinion issued by the Commission’s Legal Service confirming Mr Babiš’s conflict of interest , and indicating that Mr Babiš received an income of EUR 3.5 million during the first six months of 2018 from the Agrofert Group via his trust funds.

The resolution recalled that Members had raised this issue with the Commission throughout hearings in the Budgetary Control Committee. It regretted that for a long time the Commission remained passive , despite there having been strong indications since 2014 that Mr Babiš had a conflict of interest in his role as Minister of Finance and later as Prime Minister.

Parliament called on the Commission to follow up on this issue without delay, on the basis of the opinion of its Legal Service and to suspend all EU funding to the Agrofert Group until the conflict of interest has been fully investigated and resolved. Furthermore, it demanded that the Commission fully investigate the legality of all EU subsidies paid to the Agrofert Group since Mr Babiš joined the Czech Government, taking into account the previous Financial Regulation applicable prior to 2 August 2018 and the section therein on conflicts of interest. All illegally paid funds must be recovered and Members also called on the Council to take all necessary measures to prevent conflicts of interest in the context of the negotiations of the future EU budget and the next multiannual financial framework, in line with Article 61(1) of the Financial Regulation.

The Commission was asked to set up a control mechanism to address the issue of conflicts of interest in Member States and to set active avoidance of conflicts of interest as one of its priorities. Members called on the Commission to intervene decisively, especially when national authorities fail to act to prevent conflicts of interest of their highest representatives. For their part, national authorities and government officials must proactively apply the new Financial Regulation, in particular the provisions on conflicts of interest, in order to prevent situations harmful to the EU’s financial interests, and to serve as an example of working for the public good rather than personal gain.

Parliament called on the Commission to ensure that a zero tolerance policy with no double standards will apply regarding conflicts of interest of any EU politicians, and to find no excuse for delays when protecting the financial interests of the Union.

Documents
2018/12/13
   EP - End of procedure in Parliament
2018/12/12
   EP - Motion for a resolution
Documents
2018/12/12
   EP - Motion for a resolution
Documents
2018/12/12
   EP - Motion for a resolution
Documents
2018/12/12
   EP - Motion for a resolution
Documents
2018/12/12
   Joint motion for resolution
Documents
2018/12/12
   EP - Debate in Parliament

Documents

Activities

Votes

RC-B8-0582/2018 - Résolution 13/12/2018 12:25:27.000 #

2018/12/13 Outcome: +: 434, -: 64, 0: 47
DE FR IT ES GB AT RO SE PT BE NL HR CZ BG FI SI SK MT PL EL DK IE LU LV LT EE CY HU
Total
73
61
49
41
50
17
23
14
17
16
19
10
15
13
10
6
11
6
37
5
9
6
6
4
8
5
1
12
icon: S&D S&D
144

Belgium S&D

2

Netherlands S&D

2

Croatia S&D

2

Finland S&D

1

Slovenia S&D

For (1)

1
3

Malta S&D

3

Greece S&D

1

Denmark S&D

2

Luxembourg S&D

For (1)

1

Latvia S&D

1

Lithuania S&D

1

Estonia S&D

For (1)

1

Cyprus S&D

For (1)

1

Hungary S&D

For (1)

1
icon: PPE PPE
165

United Kingdom PPE

1

Greece PPE

1

Denmark PPE

For (1)

1

Ireland PPE

3

Luxembourg PPE

3

Latvia PPE

For (1)

1

Estonia PPE

For (1)

1
icon: Verts/ALE Verts/ALE
39

Spain Verts/ALE

2

United Kingdom Verts/ALE

5

Austria Verts/ALE

2

Sweden Verts/ALE

3

Belgium Verts/ALE

2

Netherlands Verts/ALE

1

Croatia Verts/ALE

For (1)

1

Finland Verts/ALE

For (1)

1

Denmark Verts/ALE

For (1)

1

Luxembourg Verts/ALE

For (1)

1

Latvia Verts/ALE

1

Estonia Verts/ALE

For (1)

1

Hungary Verts/ALE

2
icon: GUE/NGL GUE/NGL
31

Italy GUE/NGL

1

Sweden GUE/NGL

For (1)

1

Portugal GUE/NGL

For (1)

3

Netherlands GUE/NGL

3

Czechia GUE/NGL

2

Finland GUE/NGL

Abstain (1)

1

Ireland GUE/NGL

Against (1)

3
icon: EFDD EFDD
33

Germany EFDD

Abstain (1)

1

Czechia EFDD

For (1)

1

Poland EFDD

1

Lithuania EFDD

Abstain (1)

1
icon: ENF ENF
23

Germany ENF

Abstain (1)

1

Italy ENF

Against (2)

2

Belgium ENF

Abstain (1)

1

Netherlands ENF

2

Poland ENF

For (1)

1
icon: ECR ECR
50

Romania ECR

2

Sweden ECR

2

Netherlands ECR

For (1)

1

Croatia ECR

For (1)

1

Czechia ECR

2

Bulgaria ECR

1

Finland ECR

1

Slovakia ECR

2

Denmark ECR

2

Lithuania ECR

Against (1)

1
icon: NI NI
8

Germany NI

Against (1)

2

France NI

For (1)

Abstain (1)

2

United Kingdom NI

For (1)

1

Poland NI

Against (1)

Abstain (1)

2

Hungary NI

For (1)

1
icon: ALDE ALDE
51

Germany ALDE

2

France ALDE

3

United Kingdom ALDE

Against (1)

1

Austria ALDE

Abstain (1)

1

Romania ALDE

Against (1)

Abstain (1)

2

Sweden ALDE

1

Portugal ALDE

1

Belgium ALDE

4

Croatia ALDE

For (1)

Against (1)

2

Czechia ALDE

4

Bulgaria ALDE

3

Finland ALDE

Against (1)

Abstain (1)

3

Slovenia ALDE

For (1)

1

Denmark ALDE

Abstain (1)

3

Luxembourg ALDE

Against (1)

1

Latvia ALDE

1

Lithuania ALDE

Against (1)

Abstain (1)

2

Estonia ALDE

Against (1)

Abstain (1)

2

History

(these mark the time of scraping, not the official date of the change)

docs/0/docs/0/url
Old
http://www.europarl.europa.eu/doceo/document/B-8-2018-0582_EN.html
New
https://www.europarl.europa.eu/doceo/document/B-8-2018-0582_EN.html
docs/1/docs/0/url
Old
http://www.europarl.europa.eu/doceo/document/B-8-2018-0583_EN.html
New
https://www.europarl.europa.eu/doceo/document/B-8-2018-0583_EN.html
docs/2/docs/0/url
Old
http://www.europarl.europa.eu/doceo/document/B-8-2018-0584_EN.html
New
https://www.europarl.europa.eu/doceo/document/B-8-2018-0584_EN.html
docs/3/docs/0/url
Old
http://www.europarl.europa.eu/doceo/document/B-8-2018-0585_EN.html
New
https://www.europarl.europa.eu/doceo/document/B-8-2018-0585_EN.html
docs/4/docs/0/url
Old
http://www.europarl.europa.eu/doceo/document/RC-8-2018-0582_EN.html
New
https://www.europarl.europa.eu/doceo/document/RC-8-2018-0582_EN.html
events/0/docs
  • url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20181212&type=CRE title: Debate in Parliament
events/2
date
2018-12-13T00:00:00
type
Decision by Parliament
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/TA-8-2018-0530_EN.html title: T8-0530/2018
summary
events/2
date
2018-12-13T00:00:00
type
Decision by Parliament, 1st reading/single reading
body
EP
docs
url: http://www.europarl.europa.eu/doceo/document/TA-8-2018-0530_EN.html title: T8-0530/2018
summary
docs/0/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=MOTION&reference=B8-2018-0582&language=EN
New
http://www.europarl.europa.eu/doceo/document/B-8-2018-0582_EN.html
docs/1/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=MOTION&reference=B8-2018-0583&language=EN
New
http://www.europarl.europa.eu/doceo/document/B-8-2018-0583_EN.html
docs/2/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=MOTION&reference=B8-2018-0584&language=EN
New
http://www.europarl.europa.eu/doceo/document/B-8-2018-0584_EN.html
docs/3/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=MOTION&reference=B8-2018-0585&language=EN
New
http://www.europarl.europa.eu/doceo/document/B-8-2018-0585_EN.html
docs/4/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=MOTION&reference=P8-RC-2018-0582&language=EN
New
http://www.europarl.europa.eu/doceo/document/RC-8-2018-0582_EN.html
events/1
date
2018-12-13T00:00:00
type
Decision by Parliament, 1st reading/single reading
body
EP
docs
url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2018-0530 title: T8-0530/2018
summary
events/1
date
2018-12-13T00:00:00
type
Results of vote in Parliament
body
EP
docs
url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=31996&l=en title: Results of vote in Parliament
events/2
date
2018-12-13T00:00:00
type
Decision by Parliament, 1st reading/single reading
body
EP
docs
url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2018-0530 title: T8-0530/2018
summary
events/2/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2018-0530
New
http://www.europarl.europa.eu/doceo/document/TA-8-2018-0530_EN.html
procedure/legal_basis/0
Rules of Procedure EP 132-p2
procedure/legal_basis/0
Rules of Procedure EP 123-p2
activities
  • date: 2018-12-12T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20181212&type=CRE type: Debate in Parliament title: Debate in Parliament body: EP type: Debate in Parliament
  • date: 2018-12-13T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2018-0530 type: Decision by Parliament, 1st reading/single reading title: T8-0530/2018 body: EP type: Decision by Parliament, 1st reading/single reading
committees
    docs
    • date: 2018-12-12T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=MOTION&reference=B8-2018-0582&language=EN title: B8-0582/2018 type: Motion for a resolution body: EP
    • date: 2018-12-12T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=MOTION&reference=B8-2018-0583&language=EN title: B8-0583/2018 type: Motion for a resolution body: EP
    • date: 2018-12-12T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=MOTION&reference=B8-2018-0584&language=EN title: B8-0584/2018 type: Motion for a resolution body: EP
    • date: 2018-12-12T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=MOTION&reference=B8-2018-0585&language=EN title: B8-0585/2018 type: Motion for a resolution body: EP
    • date: 2018-12-12T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=MOTION&reference=P8-RC-2018-0582&language=EN title: RC-B8-0582/2018 type: Joint motion for resolution
    events
    • date: 2018-12-12T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20181212&type=CRE title: Debate in Parliament
    • date: 2018-12-13T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2018-0530 title: T8-0530/2018 summary: The European Parliament adopted 434 votes to 64 with 47 abstentions a resolution on conflicts of interest and the protection of the EU budget in the Czech Republic. The resolution was tabled by the EPP, ECR, and Greens/EFA groups. Parliament stated that it was deeply concerned about the Czech Republic’s non-compliance with the EU’s Financial Regulation regarding the conflict of interest of the Czech Prime Minister and his links to the Agrofert Group , and it urged the Commission to recover all funds that have been illegally or irregularly paid out. The resolution stems from the formal complaint lodged by Transparency International Czech Republic on 19 September 2018, claiming that the Czech Prime Minister, Andrej Babiš, had persistently violated EU and Czech law on conflicts of interest. Mr Babiš has been revealed to be the beneficial owner of Agrofert, the controlling company of the Agrofert Group, including among others a number of important Czech media outlets, through trust funds AB I and AB II of which he is the founder and, at the same time, the sole beneficiary. Parliament noted that companies belonging to the Agrofert Group (i) take part in projects funded by the European Agricultural Fund for Rural Development; (ii) have received significant sums from the European Structural and Investment Funds during the 2014-2020 period, ranging from EUR 42 million in 2013 to EUR 82 million in 2017. It further noted that on 1 December 2018, European media outlets such as The Guardian, Le Monde, De Standaard and the Süddeutsche Zeitung published information about the legal opinion issued by the Commission’s Legal Service confirming Mr Babiš’s conflict of interest , and indicating that Mr Babiš received an income of EUR 3.5 million during the first six months of 2018 from the Agrofert Group via his trust funds. The resolution recalled that Members had raised this issue with the Commission throughout hearings in the Budgetary Control Committee. It regretted that for a long time the Commission remained passive , despite there having been strong indications since 2014 that Mr Babiš had a conflict of interest in his role as Minister of Finance and later as Prime Minister. Parliament called on the Commission to follow up on this issue without delay, on the basis of the opinion of its Legal Service and to suspend all EU funding to the Agrofert Group until the conflict of interest has been fully investigated and resolved. Furthermore, it demanded that the Commission fully investigate the legality of all EU subsidies paid to the Agrofert Group since Mr Babiš joined the Czech Government, taking into account the previous Financial Regulation applicable prior to 2 August 2018 and the section therein on conflicts of interest. All illegally paid funds must be recovered and Members also called on the Council to take all necessary measures to prevent conflicts of interest in the context of the negotiations of the future EU budget and the next multiannual financial framework, in line with Article 61(1) of the Financial Regulation. The Commission was asked to set up a control mechanism to address the issue of conflicts of interest in Member States and to set active avoidance of conflicts of interest as one of its priorities. Members called on the Commission to intervene decisively, especially when national authorities fail to act to prevent conflicts of interest of their highest representatives. For their part, national authorities and government officials must proactively apply the new Financial Regulation, in particular the provisions on conflicts of interest, in order to prevent situations harmful to the EU’s financial interests, and to serve as an example of working for the public good rather than personal gain. Parliament called on the Commission to ensure that a zero tolerance policy with no double standards will apply regarding conflicts of interest of any EU politicians, and to find no excuse for delays when protecting the financial interests of the Union.
    • date: 2018-12-13T00:00:00 type: End of procedure in Parliament body: EP
    links
    other
      procedure/subject
      Old
      • 8.70 Budget of the Union
      New
      8.70.04
      Protecting financial interests of the EU against fraud
      procedure/title
      Old
      Conflict of interest and the protection of the EU budget in the Czech Republic
      New
      Resolution on conflicts of interest and the protection of the EU budget in the Czech Republic
      activities/1
      date
      2018-12-13T00:00:00
      docs
      url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2018-0530 type: Decision by Parliament, 1st reading/single reading title: T8-0530/2018
      body
      EP
      type
      Decision by Parliament, 1st reading/single reading
      procedure/stage_reached
      Old
      Awaiting Parliament 1st reading / single reading / budget 1st stage
      New
      Procedure completed
      activities/0/docs
      • url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20181212&type=CRE type: Debate in Parliament title: Debate in Parliament
      activities/1
      date
      2018-12-13T00:00:00
      body
      EP
      type
      Vote in plenary scheduled
      activities/0/type
      Old
      Debate in plenary scheduled
      New
      Debate in Parliament
      activities
      • date: 2018-12-12T00:00:00 body: EP type: Debate in plenary scheduled
      • date: 2018-12-13T00:00:00 body: EP type: Vote in plenary scheduled
      committees
        links
        other
          procedure
          geographical_area
          Czechia
          reference
          2018/2975(RSP)
          title
          Conflict of interest and the protection of the EU budget in the Czech Republic
          legal_basis
          Rules of Procedure EP 123-p2
          stage_reached
          Awaiting Parliament 1st reading / single reading / budget 1st stage
          subtype
          Resolution on statement
          type
          RSP - Resolutions on topical subjects
          subject
          8.70 Budget of the Union