Czechia to spend most of its EU budget money on cohesion policy

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Within the multi-annual EU financial framework, the Czech Republic will receive €27 billion along with an additional €8.7 billion that will be drawn from the New Generation coronavirus recovery fund, the Ministry of Finance announced.

Cohesion policy, which will receive most of the EU funding, aims to close the gap between richer and poorer European regions. An estimated €19 billion of EU funds will be directed to projects such as infrastructure, transport, research, education, and the community sector.

“Cohesion policy will also get additional funding from the React-EU program to mitigate the impact of the pandemic and increase resilience. In the case of the Czech Republic, the money will be spent primarily on health care,” stated the ministry.

The ministry also commented on the new recovery fund, which aims to create a new instrument supporting structural reforms and investments in order to support the recovery and resilience of the economy.

“To draw funds from this instrument, member states will prepare specific plans determining in which areas they want to direct the funds,” the ministry noted, adding that the Czech Republic will follow recommendations of the European Council for the Czech Republic.

About €7 billion euros from the multi-annual financial framework will then go on the help to the agriculture sector and rural areas.

Furthermore, the Czech Republic will be able to use funds from other EU competitive programs to support, for example, science, research, innovation, small and medium-sized companies, transport, digitization, and culture, the ministry added.

Title image: Czech Republic’s Prime Minister Andrej Babis arrives for an EU summit at the European Council building in Brussels, Friday, Feb. 21, 2020. In a second day of meetings EU leaders will continue to discuss the bloc’s budget to work out Europe’s spending plans for the next seven years. (AP Photo/Virginia Mayo)

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