Brussels, 8 February 2023
The European Commission has today endorsed a positive preliminary assessment of Czechia’s payment request for €928 million (net of pre-financing) in grants under the Recovery and Resilience Facility (RRF), the key instrument at the heart of NextGenerationEU.
On 25 November, Czechia submitted to the Commission a payment request based on the achievement of the 31 milestones and 6 targets set out in theCouncil Implementing Decisionfor the first instalment. The milestones and targets fulfilled demonstrate significant progress made in the implementation of Czechia’s recovery and resilience plan. They cover reforms in the areas of school curricula and health, as well as Czechia’s audit and control system for the implementation of the RRF, mainly focused on the system of avoidance and management of conflict of interest. For instance, Czechia has amended the law on the registration of beneficial owners so that it is fully in line with the EU’s Anti-Money Laundering Directive. Several targets also concern major investments in railway infrastructure and digital tools for education.
With their request, Czechia’s authorities provided detailed and comprehensive evidence demonstrating the fulfilment of the 31 milestones and 6 targets. The Commission has thoroughly assessed this information before presenting its positive preliminary assessment of the payment request.
Czechia’s recovery and resilience plan includes a wide range of investment and reform measures organised in six thematic components. The plan will be supported by €7bn in grants (with €640 million in additional grants still available for request), 13% of which (€915 million) was disbursed to Czechia in pre-financing on 28 September 2021.
Payments under the RRF are performance-based and contingent on Member States implementing the investments and reforms outlined in their respective recovery and resilience plans.
President of the European Commission Ursulavon der Leyen said:
“I have good news for Czechia. Given its successful first set of reforms and investments, the country is ready to receive a first payment under NextGenerationEU. Once EU countries give their green light, Czechia will receive over €928 million as a result of its good progress on its national recovery and resilience plan, which is worth around €7 billion. Czechia has been working, for example, on preventing conflicts of interests in the implementation of the EU funds. Czechia has also stepped up investments in digital devices for schools and adopted a strategy to boost the country’s circular economy in the run-up to 2040. Finally, we welcome the important measures to make railway and other public buildings more energy-efficient. Keep up the good work, Czechia! The Commission stands by your side on your way to recovery.”
Next steps
The Commission has now sent its positive preliminary assessment of Czechia’s fulfilment of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), asking for its opinion. The EFC’s opinion, to be delivered within a maximum of four weeks, should be taken into account in the Commission’s assessment. Following the EFC’s opinion, the Commission will adopt the final decision on the disbursement of the financial contribution, in accordance with the examination procedure, through a comitology committee. Following the adoption of the decision by the Commission, the disbursement to Czechia can take place.
The Commission will assess further payment requests by Czechia based on the fulfilment of the milestones and targets outlined in the Council Implementing Decision, reflecting progress on the implementation of the investments and reforms.
The amounts disbursed to the Member States are published in theRecovery and Resilience Scoreboard, which shows progress of the implementation of the national recovery and resilience plans.
For More Information
Question and Answers on Czechia’s disbursement request under NextGenerationEU
Press release on €915m in pre-financing to Czechia
Questions and Answers: European Commission endorses Czechia’s plan
Factsheet on Czechia’s recovery and resilience plan
Annex to the Council Implementing Decision
Commission Staff Working Document: Analysis of the recovery and resilience plan of Czechia
Recovery and Resilience Facility
Recovery and Resilience Scoreboard
Recovery and Resilience Facility Regulation
Question and Answers on the Recovery and Resilience Facility
Brussels, 8 February 2023
How did the Commission assess Czechia’s first payment request?
On 25 November, Czechia submitted to the Commission a request for the disbursement of €928m (net of pre-financing) under the Recovery and Resilience Facility (RRF). The request was based on the achievement of the 31 milestones and 6 targets for the first instalment, as outlined in the Council Implementing Decision approving the plan. They cover reforms in the areas of school curricula and health, as well as Czechia’s audit and control system for the implementation of the RRF. Several targets also concern major investments in railway infrastructure and digital tools for education.
With their request, the Czech authorities provided detailed and comprehensive evidence demonstrating the fulfilment of the 31 milestones and 6 targets. The Commission has thoroughly assessed this information before endorsing the positive preliminary assessment of the payment request.
What are the next steps?
The Commission has now sent the positive preliminary assessment of Czechia’s fulfilment of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), asking for its opinion. The EFC’s opinion, to be delivered within maximum four weeks, should be taken into account in the Commission’s assessment. The Commission will adopt the decision on the disbursement of the financial contribution, in accordance with the examination procedure, through a comitology committee. Following the adoption of this decision by the Commission, the disbursement to Czechia would take place. The amounts disbursed to the Member States will be published in the Recovery and Resilience Scoreboard. The Commission has also shared its positive preliminary assessment with the European Parliament.
How do the milestones and targets achieved by Czechia so far effectively support the green transition?
In the context of Czechia’s first payment request, the green transition is supported by 8 milestones and 4 targets. For example, Czechia adopted the “Circular Czechia 2040 strategy” which aims at boosting Czechia’s circular economy, in line with the EU’s Circular Economy Action Plan by, for example, reducing waste to a minimum. Several other investments supporting the green transition were also carried out as part of this payment request. They include 25 kilometres of built cycle paths, three reconstructed railway bridges and 45 safer railway level crossings with newly installed or modernised flashlight warning systems or mechanical safety installations. Czechia has also identified a list of railway projects that will be completed under subsequent payment requests. These will include 39,7 kilometres of electrified railway lines, 41 kilometres of digitalised lines for increased safety, 121,8 kilometres of modernised lines with improved railway traffic management and safety, as well as 35 station buildings with reduced energy intensity and increased comfort for passengers. Czechia also launched a tender to renovate at least 2.000 public lightning systems.
How do the milestones and targets achieved by Czechia so far effectively contribute to the digital transition?
In the context of Czechia’s first payment request, the digital transition is supported by 4 milestones and 1 target. For example, Czechia has set up a high-level advisory working group coordinating and speeding up the digitalisation of the economy, in particular eGovernment. Czechia also launched the Central European Digital Media Observatory to combat online disinformation and has been supporting a wide array of projects to support the development of eGovernment and IT skills in the workforce (e.g. the purchase of IT devises, the organisation of training courses and the reform of school curricula to cover digital competences).
How do the milestones and targets achieved by Czechia so far contribute to improving Czechia’s economic and social situation, and its resilience?
In the context of its first payment request, Czechia successfully implemented 9 milestones aimed at strengthening its institutional resilience. On economic matters, the Czech economy is being strengthened by, for example, the creation of the National Coordination Group for the Support for Industrial Research, which should harmonise industrial research and development support policies.
On social matters, several targets were met in the area of education, in particular for children and the youth. For example, more than 70 000 digital devices were purchased for distance learning during the school lockdown, including for pupils from disadvantaged socio-economic backgrounds. In addition, a reform revised the curricula of primary, lower-secondary schools and upper-secondary schools to promote digital literacy and IT skills. This reform not only reinforces the importance of IT learning in pupils’ education, but it also extends its scope to other areas such as data processing and modelling, coding and programming, robotics, virtual/augmented reality, and 3D printing. Schools will gradually implement the changes to the curricula in the run-up to September 2025.
Czechia has also improved its societal resilience by fulfilling important reforms and investments related to its healthcare system. This will also be improved through Czechia’s new National Oncological Programme for 2022-2030 which sets out, among other things, the scope and quality screening programmes for cancer prevention. This is particularly valuable as the cancer prevention and care system was heavily affected by the COVID-19 pandemic.
Finally, Czechia implemented several measures aimed at improving its control and audit procedures and guaranteeing the protection of the EU’s financial interests. These measures focus primarily on the avoidance of conflicts of interest. Czechia has amended the law on registration of beneficial owners so that it is fully in line with the EU’s Anti-Money Laundering Directive. Czechia also prepared and implemented sufficiently robust and exhaustive internal control procedures and tools (guidance documents, procedures for the system to collect, store and process data, repository system) to boost the avoidance and management of conflicts of interest and to meet the control requirements set by the RRF Regulation.
Does the achievement of these first milestones and targets contribute to an effective implementation of the Plan?
The milestones and targets fulfilled constitute significant steps in the implementation of Czechia’s recovery and resilience plan, and of its broader reform agenda. They include important measures, such as reforms in the areas of school curricula and health, as well as Czechia’s audit and control system for the implementation of the RRF. Several targets also concern major investments in railway infrastructure and digital tools for education. Czechia has also validated its control and audit procedures concerning the organisation and treatment of data under the RRF.
For More Information
Press release on the positive preliminary assessment of Czechia’s request for €928m disbursement
Press release on €915m in pre-financing to Czechia
Questions and Answers: European Commission endorses Czechia’s plan
Factsheet on Czechia’s recovery and resilience plan
Annex to the Council Implementing Decision
Commission Staff Working Document: Analysis of the recovery and resilience plan of Czechia
Recovery and Resilience Facility
Recovery and Resilience Scoreboard
Recovery and Resilience Facility Regulation
Question and Answers on the Recovery and Resilience Facility
Source – EU Commission