Czech Republic Secures an Additional CZK 41 Billion from the EU for Modernization Efforts

The European Commission (EC) has reviewed the Czech Republic’s latest payment request under the Recovery and Resilience Facility (RRF), issuing a positive preliminary assessment of 63 milestones and targets. Two milestones were flagged as partially fulfilled. Following approval by EU member states, the Czech Republic will receive over CZK 37 billion in grants and more than CZK 4 billion in loans.

“The National Recovery Plan is unique in combining investment projects with commitments to significant reforms aimed at strengthening our society and ensuring long-term stability. These include energy sector transformations toward clean energy, enhancing the education and healthcare systems, improving social care, and fostering innovation in key economic sectors,” stated Lukáš Vlček, Minister of Industry and Trade.

Key Achievements and Upcoming Reforms

The allocated funds reflect the Czech Republic's adherence to clear commitments, such as:

• Legislation facilitating the use of renewable energy sources.
• Updates to the hydrogen strategy.
• Implementation of a new freight transport concept.
• Completion of numerous projects modernizing railway lines and stations.
• Creation of new cycling paths, sidewalks, and barrier-free routes.
• Launching new university campus projects like Mephared 2 UK, Biocentrum UK, and BiopharmaHub MUNI.

However, work remains on certain milestones. For instance, a comprehensive long-term care reform, including community-based care, must be finalized within six months. The Ministry of Labor and Social Affairs is actively drafting necessary legislation. Pending this reform, the EC has withheld CZK 4.1 billion. An additional CZK 2.4 billion is temporarily withheld due to delays in improving transparency for connecting to the energy distribution system, tied to the LEX OZE III legislative amendment currently under parliamentary debate.

The Economic Policy Committee, Economic and Financial Committee, and Committee on Committology must still review the payment request. The funds are expected to be disbursed by the end of this year, with the withheld amounts potentially released in 2025 upon milestone completion.

National Recovery Plan: A Roadmap to a Green and Digital Future

Created in response to the COVID-19 pandemic, the National Recovery Plan aims to steer the Czech Republic toward a sustainable and digital future. If all milestones are met by 2026, the country stands to receive up to CZK 209 billion in grants and CZK 19.4 billion in loans under the RRF.

The plan is structured around seven pillars:

1. Digital transformation.
2. Green transition and physical infrastructure.
3. Education and labor market.
4. Research, development, and innovation.
5. Public administration.
6. Healthcare.
7. REPowerEU initiatives.

The RRF is central to the NextGenerationEU framework, which allocates over €800 billion to support investments and reforms across the EU.

For the latest updates on plan implementation and funding opportunities, visit www.planobnovycr.cz.