The European Commission has today disbursed €915 million to Czechia in a pre-financing payment under the RRF. This is equivalent to 13% of the country's total financial allocation under the RRF. The pre-financing payment will help to kick-start the implementation of the crucial investment and reform measures outlined in Czechia's recovery and resilience plan.
Czechia is set to receive a total of €7 billion under the RRF. The Commission will authorise further disbursements based on the implementation of the investments and reforms outlined in Czechia's recovery and resilience plan.
Today's disbursement follows the recent successful implementation of the first borrowing operations under NextGenerationEU. By the end of the year, the Commission intends to raise up to a total of €80 billion in long-term funding, complemented by short-term EU-Bills, to fund the first planned disbursements to Member States under NextGenerationEU.
The RRF is at the heart of NextGenerationEU which will provide €800 billion (in current prices) to support investments and reforms across Member States. The Czech plan is part of the unprecedented EU response to emerge stronger from the COVID-19 crisis, fostering the green and digital transitions and strengthening resilience and cohesion in our societies.
Supporting transformative investments and reform projects
The RRF in Czechia will finance investments and reforms that are expected to have a deeply transformative effect on Czechia's economy and society. Here are some of these projects:
-Securing the green transition: The Czech plan provides €1.4 billion to finance large-scale renovation programmes to increase the energy efficiency of residential and public buildings, including childcare and social care facilities. It also supports the decarbonisation of transport through €1.1 billion investments in railway infrastructure, more than 5000 low-emission vehicles for the public and business sector, over 4,500 electric charging stations and 90 km of cycling pathways.
-Supporting the digital transition: The plan will invest €585 million in strengthening digital skills by revamping the digital curricula in education, providing digital equipment and training to schools, financing new university programmes with digital focus and upskilling and reskilling programmes. The plan also provides €450 million for the digital transformation and cyber-security of public administration, the justice system and health care.
-Reinforcing economic and social resilience: The Czech plan has a strong focus on increasing the resilience of healthcare. €823 million will be invested in new medical facilities and equipment, including in the area of cancer prevention and care, rehabilitation care and cardiovascular treatments. Moreover, the plan foresees a reform of long-term care combined with an investment to improve the accessibility and quality of long-term care across the country. The plan will also improve the business environment through improved access to finance, accelerated licencing procedures and reinforced anti-corruption measures.
Members of the College said
President Ursula von der Leyen said: “I am delighted that Czechia will receive its first disbursement of €915 million under NextGenerationEU. This is an important step towards delivering the ambitious programme of measures contained in Czechia's recovery and resilience plan. The plan will play a crucial role in supporting a shift towards a greener and more digital future for Czechia. I also welcome the strong emphasis the plan places on strengthening the resilience of Czechia's healthcare system to prepare it for future challenges. We will stand with Czechia every step of the way to ensure that its people fully benefit from the plan.”
Johannes Hahn, Commissioner for Budget and Administration said: “It is great news that the NextGenerationEU funds raised on the financial market continue to reach EU countries swiftly. This is a clear demonstration of the EU delivering on the ground. I am sure our support will soon become visible in the green and digital projects that Czechia is putting into place, to the benefit of its citizens and our common future.”
Paolo Gentiloni, Commissioner for Economy, said: “Today's pre-financing payment of €915 million is the first transfer of a total of €7 billion in NextGenerationEU funds that will flow to Czechia over the next five years. This money will support reforms and investments to build a more sustainable and competitive Czech economy. There will be very sizeable investments in building renovation, clean energy and sustainable mobility, as well as measures to boost digital infrastructure and skills and the digitalisation of public services. The business environment will benefit from the promotion of e-government and anti-corruption measures. And importantly, the plan will also support improvements in healthcare, including reinforced cancer prevention and rehabilitation care.”
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