Brussels transfers almost CZK 21.4 billion to Czechia from EU recovery fund

The European Commission has paid out 897 million euros (roughly CZK 21.4 billion) to Czechia as part of the sixth tranche from the Recovery and Resilience Facility (RRF), the EU fund set up to help member states' economies recover from the COVID-19 pandemic.

Czechia submitted its payment request back in April, with the funds tied to the fulfilment of specific commitments — chiefly reforms and investments in healthcare and energy. The European Commission approved the tranche in July, after which representatives of the other EU member states also gave their consent. Brussels deducted from the current sum a portion of the funds already advanced to Czechia as pre-financing payments in 2021 and 2023.

How the recovery fund works

Access to money from the RRF depends directly on Czechia meeting the targets and commitments set out in its National Recovery Plan, covering both investments and structural reforms. The European Commission raises the money for the fund by borrowing on the financial markets.

To receive the full amount owed, Czechia — like other EU countries — must fulfil all its outstanding commitments by the end of August and then submit its final payment request by the end of September, according to earlier statements from the European Commission. All countries are expected to receive their remaining payments by the end of this year.

How much Czechia stands to receive in total

In total, Czechia can expect to receive up to 8.67 billion euros from the recovery fund. Of this, 8.4 billion euros comes in the form of non-repayable grants, with the remainder made up of low-interest loans. The money is earmarked for digitalisation, the green transition, strengthening the healthcare system and improving education.

Source: novinky.cz