EU gives initial approval to Czechia’s final CZK 23 billion recovery payment

The European Commission has provisionally approved Czechia’s final recovery-plan payment of €951 million, approximately CZK 23 billion, supporting projects ranging from affordable housing to cleaner public transport.

The seventh payment under the National Recovery Plan still requires completion of the EU approval process. The Industry and Trade Ministry expects the money to arrive in December.

The commission concluded that Czechia had satisfactorily met the 13 milestones and 25 targets attached to the payment. Completing the process would mean all milestones and targets under the Czech plan had been fulfilled and recognized, according to the ministry.

The measures covered include support for affordable rental housing through renovation and construction across more than 130 housing projects, with a combined value of €350 million.

Health care and medical education also feature prominently, including support for the Czech Oncology Institute at Prague’s Motol University Hospital and two new university campuses.

Other measures include the electrification of Prague public transport, community energy development, quantum communication infrastructure and improvements to teachers’ digital skills, according to the Czech permanent representation to the EU.

Funding also supports energy-saving renovations of public buildings and modernization of public lighting.

More than 700 preschool care and social-service facilities are covered by construction and renovation measures intended to improve access to care.

These projects form part of the recovery plan’s wider investments and reforms. The €951 million is the final payment installment, rather than a separate new allocation covering the entire cost of every listed project.

The Industry and Trade Ministry said Czechia would use approximately CZK 214 billion in European funding and loans through the National Recovery Plan.

The largest share went to the pillar covering physical infrastructure and the green transition, including transportation and the shift toward a lower-carbon economy.

The final payment remains subject to review by the Council of the EU’s Economic and Financial Committee before disbursement. The ministry said 38 milestones and targets were awaiting final recognition—the same total assessed positively by the commission Thursday.

The National Recovery Plan draws on the EU’s Recovery and Resilience Facility, established in response to the COVID-19 pandemic.

The facility was designed to help member states address the pandemic’s economic and social effects while investing in environmental and digital changes.

It is financed partly through borrowing undertaken by the European Commission on the EU’s behalf. Borrowing used to finance grants is to be repaid from the shared EU budget in subsequent years.