European Commission approves Czechia's revised recovery plan, bringing an extra €2.2 billion

The European Commission (EC) today approved the revised Czech National Recovery Plan. It brings an additional 2.2 billion euros (around 53.6 billion crowns) to finance clean energy and the transformation of industry, EC President Ursula von der Leyen said in Prague today after talks with Prime Minister Petr Fiala (ODS). According to the EC, the National Recovery Plan now totals 9.2 billion euros (around 224.2 billion crowns).

The plan includes 736 million euros (17.8 billion crowns) for investment in the electricity grid, renewable energy sources and clean transport, von der Leyen specified. The National Recovery Plan will also support the development of skills that Czechia will need for the green transformation of industry, she said.

According to the EC, Czechia has added new investment plans to its recovery plan, including the construction of affordable housing and the strengthening and digitalisation of its electricity distribution systems. It has also expanded its plans to strengthen cybersecurity in public administration. Czechia has also added a new chapter to the plan focused on drawing funds from the REPowerEU programme, which includes 15 reforms and nine investments aimed at ending dependence on Russian fossil fuels.

Fiala said he had discussed the project to increase the capacity of the TAL oil pipeline with the EC president today. The pipeline connects Czechia with Italian ports and could help reduce dependence on Russian oil. Fiala noted that state investment in the project is subject to approval by the Commission, known as notification.

Czechia is also awaiting notification for the planned expansion of the Dukovany nuclear power plant. After meeting with von der Leyen, Fiala said he saw a strong chance that Czechia would receive this notification. He stressed that nuclear energy is a fundamental source of electricity in Czechia and will also play a key role in decarbonising the Czech energy sector. He noted that Czechia has strong expertise in this area, both at universities and in research and development.

Von der Leyen said that the choice of energy mix remains entirely in the hands of individual EU member states. The Commission is aware that nuclear energy is essential for Czechia, she said. The EC is therefore able to consider state aid programmes for the sector.