The Czech Republic has submitted its official Recovery and Resilience Plan to European Commission
The Czech Republic, also known as Czechia, today, i.e., June 2, 2021 submitted its official Recovery and Resilience Plan to European Commission that defines the reforms and public investment projects which Czechia will undertake with the help of Recovery and Resilience Facility (RRF).
The Czech Republic has requested for a total of € 7.1 billion in grants under the RRF. Czech Republic’s plan focusses on digital transformation, green transformation, physical infrastructure, education, labour market, R&D and Innovation, public administration and health. Projects in the plan cover the entire lifetime of the RRF until 2026.
Taking it to twitter, the President of E.U. Commission – Ursula von der Leyen tweeted,
We have received Czechia’s recovery and resilience plan.
— Ursula von der Leyen (@vonderleyen) June 2, 2021
It includes reforms & investments in the green & digital transitions, education, the labour market, research, public administration and health. #NextGenerationEU will help build a greener, more sustainable future in 🇨🇿
Going ahead, the European Commission will now assess the plans within the next 2 months basis the eleven criteria set out in the Regulation and translate their contents into legally binding acts. This will be followed by a review which will assess that whether the plans contribute to effectively addressing all or a significant subset of challenges identified in the relevant country-specific recommendations. The European Council will have four weeks to adopt the Commission’s proposal for a Council Implementing Decision.
In 2020, E.U. had announced a € 672.5 billion Recovery and Resilience Facility (RRF) to help the European economies fight the economic adversities of the Coronavirus (COVID-19). Of this, € 312.5 billion will be given as grants and € 360 billion in loans. All the 27 Member States are required to submit a recovery and resilience plan to get their share of funds.
As per E.U., the Member States must spend atleast 37% of their share of funds on renewable energy projects and 1/5th of funds on bolstering digital services and research. The RRF is planned to help European nations emerge stronger from COVID-19 and securing the green and digital transitions.
For 70% of the total of € 312.5 billion available in grants, the allocation key will take into account the Member State’s population, the inverse of its Gross domestic Product (GDP) DP per capita and its average unemployment rate over the past 5 years compared to the E.U. average. For the remaining 30%, the observed loss in real GDP over 2020 and the observed cumulative loss in real GDP over the period 2020-2021 will be considered.
As of now, the European Commission has now received the Recovery and Resilience Plan from 23 nations that include Belgium, Czechia, Denmark, Germany, Greece, Spain, France, Croatia, Italy, Ireland, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland, and Sweden.
