Czechia

Since the beginning of the pandemic, the Commission has adopted support measures under the state aid Temporary Framework and EU state aid rules. These measures aim to help citizens and companies and mitigate the significant economic impact of the coronavirus pandemic:

• On 8 February 2022, the Commission approved €43.63 in million aid to compensate CFR Calatori, the largest public service operator of rail passenger transport in Romania, for the damage suffered due to the coronavirus outbreak and the restrictive measures implemented to limit the spread of the virus. The support, in the form of an equity injection, aims to help the beneficiary’s economic activity.
• On 28 January 2022, the Commission approved the reintroduction of a previous scheme meant to support travel agencies in the context of the coronavirus outbreak. The reintroduction also includes a budget increase of €8.3 million. The support, in the form of bank guarantees, secures the beneficiaries' co-participation under a compulsory insurance against bankruptcy and thus aims to help travel agencies facing a lack of liquidity to obtain such an insurance, allowing them to continue their activities during and after the pandemic.
• on 28 September 2021, the Commission approved the modification of two existing schemes aimed at supporting companies affected by the coronavirus outbreak. The schemes, previously approved in January 2021 and July 2020, and subsequently amended in January 2021, increase the overall budgets from €160 million to €856 million, and from €970 million to €1.1 billion respectively, and extend the nominal amount per beneficiary as well as the duration of the support programme. The modifications aim to help the beneficiaries continue their economic activities and avoid layoffs.

• on 2 August 2021, the Commission approved a €31 million aid scheme to compensate rail passenger transport operators for the damage suffered due to the coronavirus outbreak and the restrictive measures implemented to limit the spread of the virus. The support, in the form of direct grants, covers up to 100% of the loss incurred between 12 March and 30 June 2020.

• on 2 August 2021, the Commission approved a €3.9 million scheme to support around 900,000 self-employed persons in the context of the coronavirus outbreak. The support, in the form of health insurance contributions payment deferral, aims to ease the liquidity constraints the self-employed are facing due to the coronavirus outbreak and the restrictive measures implemented to limit the spread of the virus.

• on 14 July 2021, the Commission approved a scheme of around €1.78 million to support terrestrial television network operators affected by the coronavirus outbreak. Under the state aid Temporary Framework, the support, in the form of direct grants, aims to alleviate certain liquidity shortages faced by the beneficiaries resulted from the postponement of digital terrestrial television switching-off phase. The aid will cover the additional costs resulting from the postponement of the deadline for the digital terrestrial television switching-off phase from 30 June to 31 October 2020.

• on 13 July 2021, the Commission approved a €660 million scheme to support some 200,000 self-employed persons and partners in small limited liability companies affected by the coronavirus outbreak. Under the state aid Temporary Framework, the support, in the form of direct grants, follows a previous €1.2 billion compensation scheme and aims to mitigate the adverse effects of the coronavirus outbreak on the liquidity of the eligible small businesses.

• on 28 May 2021, a €7.9 million scheme to support film production workers, producers, distributors and cinemas in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants, aims to mitigate the impact of the restrictive measures imposed by the government to limit the spread of coronavirus, and help the beneficiaries resume their activities after the outbreak.

• on 11 May 2021, a €11.6 million scheme to support businesses active in the travel services sector, in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the support, in the form of bank guarantees, secures the beneficiaries’ co-participation under a compulsory bankruptcy insurance. The purpose of the scheme is to help the beneficiaries facing liquidity shortages benefit from this protective measure, allowing them to continue their activities during and after the coronavirus outbreak.

• on 10 May 2021, a scheme of approximately € 1.9 billion to support companies of all sizes active in all sectors, except the financial one, affected by the coronavirus outbreak. Under the state aid Temporary Framework, the aid, in the form of direct grants, guarantees or loans, aims to provide the beneficiaries with sufficient liquidity to continue their activity during and after the coronavirus outbreak.

• on 26 April, a €1.9 billion scheme to support the uncovered fixed costs of Czech companies affected by the coronavirus outbreak. Under the state aid Temporary Framework, the scheme aims to benefit companies of all sizes activating in all sectors except the financial one. The purpose of the scheme is to mitigate the economic difficulties and liquidity shortages faced by businesses due to the restrictive measures imposed by the government to limit the spread of the coronavirus.

• on 30 March, a Czechaid scheme worth approximately €22 million to support companies active in the organisation of fairs, exhibitions, conferences and business events, in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants, aims to mitigate the economic difficulties and the liquidity shortages faced by the beneficiaries due to the outbreak and the measures implemented to limit the spread of the virus.

• on 29 March 2021, a Czech scheme (‘COVID Invest') for guarantees on new investment loans, to support lending companies affected by the coronavirus outbreak, and the modification of an existing scheme (‘COVID Plus’) providing guarantees to large exporting companies. Under the state aid Temporary Framework, the two schemes can jointly generate loans with a nominal amount of up to €19.3 billion. The ‘COVID Invest' scheme, sharing its budget with the ‘COVID III' scheme approved in May 2020, aims to provide guarantees on new investment loans to small and medium-sized enterprises and large companies. The scheme aims to support the liquidity needs of firms whose financial needs have increased significantly over the past year, including fast-growth companies, start-ups and scale-ups, and will be managed by the Czech promotional bank (CMZRB). The modification to the existing “COVID Plus” scheme, approved in May 2020, and subsequently modified in July and December 2020, extends the sectoral scope by including companies in the accommodation business.

• on 22 March 2021, a Czech scheme of approximately €3 million to support businesses operating tours that were prevented from carrying out their activities due to government measures introduced to limit the spread of the coronavirus. Under the state aid Temporary Framework, the public support, in the form of direct grants, aims to help the beneficiaries address their liquidity needs, preserve employment and maintain the operation of businesses and the supply of services in the tourism sector.

• on 8 March 2021, a €38.5 million Czech scheme to support companies active in the ski resort sector that have been adversely affected by the coronavirus outbreak. Under the state aid Temporary Framework, the support, in the form of direct grants, aims to mitigate the sudden liquidity shortages these companies are facing due to restrictive measures implemented by the Czech government to limit the spread of the virus, notably the mandatory closure of ski resorts in wintertime. 

• on 1 March 2021, a Czech scheme of around €110 million to support enterprises active in the primary agricultural sector and food production affected by the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants, is open to all enterprises active in the primary agricultural production sector (farmers) and food production. The purpose of the scheme, expected to benefit between 5,000 and 10,000 businesses, is to help the beneficiaries address liquidity needs and continue their activities during and after the outbreak.

• on 24 February 2021, a Czech scheme of around €115 million to support retail businesses and service companies using rented premises, whose activities were limited or prohibited in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants, covers 50% of the rent due for the last three months of 2020. The purpose of the scheme is to mitigate the sudden liquidity shortages that companies are facing due to the measures introduced by the Czech government to limit the spread of the coronavirus.

• on 15 February, a €1.2 billion Czech scheme to support self-employed and partners in small limited liability companies affected by the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants, aims to mitigate the adverse effects of the coronavirus outbreak on the liquidity of the eligible small businesses. The scheme is expected to support over 1 million self-employed and partners in small limited liability companies.

• on 27 January 2021, a Czech scheme worth around €230 million to support companies affected by the restrictive measures imposed by the Czech government to limit the spread of the coronavirus. Under the state aid Temporary Framework, the public support, in the form of direct grants, is open to companies active in all sectors, except those active in the financial one. The aim of the scheme is to address the liquidity needs of the beneficiaries, and help them to continue their activity during and after the outbreak.

• on 14 January 2021, the modification of an existing aid scheme and a new measure to support Czech employers to be in line with the Temporary Framework. The existing scheme, approved in July 2020, consists of grants covering up to 80% of the employers’ wage costs. Its extension and budget increase, from €866 million to €970 million, are estimated to benefit around 280,000 businesses and prevent unemployment. The new aid measure, worth €160 million, provides support to businesses that were prohibited or restricted from carrying out their activities due to the coronavirus outbreak. The financing, covering up to 100% of the employers’ wage costs, is expected to support around 27,000 businesses of all sizes.

• on 23 December, two Czech schemes with a total budget of €20 million, to support profit and non-profit sport entities participating in professional leagues and companies organising sport events, affected by the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants, is available to companies that have experienced a significant decline in revenue due to the coronavirus outbreak and the measures imposed by the Government to limit the spread of the virus. Both schemes aim to address the liquidity needs of the beneficiaries and to help them to continue their activities during and after the outbreak.

• on 25 November, a €28.4 million Czech scheme to support operators who had to cancel or postpone cultural events due to the restrictive measures implemented by the government to limit the spread of the coronavirus. Under the state aid Temporary Framework, the scheme follows a Czech aid scheme to support operators of cultural events, approved on 19 August 2020 . Under the new measure, the support targets events cancelled or postponed between 1 March 2020 and 31 December 2020. Direct grants were earmarked to cover up to 50% of the eligible expenses for limited, postponed or cancelled cultural events, and up to 80% of eligible expenses for continuous cultural activities (i.e. the operation of theatres, music clubs, artistic management agencies, cultural centres and other similar facilities). Support will also be available for the operation of cultural venues, and for self-employed artists or professional technicians active in the cultural sector.

• on 16 November, the Commission approved a €7.5 million Czech scheme to support businesses located in the City of Pilsen affected by the coronavirus outbreak. Under the state aid Temporary Framework, the scheme aims to remedy the disturbance in the Czech economy, and help businesses and organisations located in Pilsen to preserve economic continuity. The scheme is open to beneficiaries active in all sectors apart from the financial institutions, and mainly consists of sub-measures related to rent and lease discount and deferral of rent payments for property and agricultural land, direct grants for organisations, sport clubs and cultural organisations established or founded by the City of Pilsen.

• on 11 November, the Commission approved a €110 million Czech scheme to support enterprises active in the primary agricultural sector and in food production affected by the coronavirus outbreak. Approved under the State aid Temporary Framework, the public support will take the form of direct grants open to food producers and all enterprises active in the primary agricultural production sector (farmers). The aid is specifically intended to ensure sufficient working capital for beneficiaries, which suffered a decrease in total earnings of at least 25%, compared to the same period in 2019. The purpose of the scheme is to help around 5,000 and 10,000 beneficiaries address their liquidity needs and continue their activities during and after the outbreak.

• on 3 November, a €110.5 million Czech scheme to support retail businesses and service companies renting premises, whose activities were limited or forbidden due to the measures imposed by the government in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the public support will take the form of direct grants and will cover 50% of the rent due for the months of July, August and September 2020. The purpose of the scheme is to mitigate the liquidity shortages that the affected companies are facing due to the measures taken by the Czech government to limit the spread of the coronavirus.

• on 21 October, a €2.3 million Czech scheme to support providers of curative medical procedures and rehabilitation treatments in the Karlovy Vary Region, in the context of the coronavirus outbreak. Under the State aid Temporary Framework, the public support will take the form of direct grants, aimed at mitigating the liquidity shortages that therapeutic enterprises in the region are facing due to the drop in the number of patients, caused by the coronavirus outbreak. This scheme complements a previous one aimed at supporting health facilities across the Czech Republic, approved by the Commission in August.

• on 8 September 2020, an around €305 million (CZK 8 billion) Czech scheme to support self-employed that have been particularly affected by the coronavirus outbreak. The public support, which will be open to self-employed active in all sectors except the financial one, will take the form of waivers of payments and penalties and deferrals of payments of mandatory monthly health insurance contributions for the period from March to August 2020 (which means payments due in the period from April to September 2020).

• on 27 August 2020, a Czech aid scheme of 126.7 million euros (3.31 billion CZK) to support operators offering accommodation services, forced to close their doors due to restrictive measures that the Czech authorities had to take to limit the spread of the coronavirus. Public support will be granted through direct subsidies in the form of a fixed amount per room and per day, for the entire period during which the accommodation was closed, ie from 14 March to 24 May 2020. The measure aims to alleviate the sudden cash shortages that beneficiaries face as a result of the pandemic

• on 24 August 2020, an approximately €97 million (CZK 260 million) Czech scheme to support companies which have been particularly affected by the coronavirus outbreak. The public support, which will be open to companies of all size active in all sectors except the financial sector, will take the form of direct grants. The aim of the scheme is to help the beneficiaries address the liquidity shortages they are facing as a result of the coronavirus outbreak. The measure will provide support for projects relating to (i) employee training, (ii) childcare facilities, rent for childcare facilities and upskilling of caregivers and (iii) wage subventions for jobs created for disadvantaged people and for jobs offered to previously unemployed people.

• on 19 August 2020, a €34 million (CZK 900 million) Czech scheme to support operators who had to cancel or postpone their cultural event(s) due to the restrictive measure that Czechia had to implement to limit the spread of the coronavirus. The public support will take the form of direct grants and will cover up to 50% of the eligible expenses, i.e. the expenses incurred by the operator to organise the event that was ultimately postponed or cancelled. The purpose of the measure is to facilitate access to external financing by the beneficiaries and to mitigate the sudden liquidity shortages they are facing as a result of the coronavirus outbreak.

• on 10 August 2020, under EU State aid rules, a CZK 1 billion (€38 million) Czech scheme to support providers of SPA medical procedures and curative rehabilitation treatments that were impacted by the coronavirus outbreak. The public support will take the form of direct payments to cover discounts applied by the beneficiaries to all consumers from the European Economic Area that reserve a minimum package of overnight stays and spa rehabilitation treatments at their facilities. The measure aims at mitigating the liquidity shortages that these businesses experienced due to the measures that Czechia had to implement to limit the spread of the coronavirus. The Commission assessed the measure under EU State aid rules, and in particular Article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures implemented by Member States to remedy a serious disturbance in their economy. The Commission found that the scheme is in line with the principles set out in the EU Treaty and the general principles of the Temporary Framework.

• a CZK 22.9 billion (approximately € 866 million) Czech wage subsidy scheme providing support to enterprises affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. By contributing to their wage costs, this scheme supports undertakings that, due to the coronavirus outbreak, would otherwise lay off personnel. The scheme is accessible to employers of all sizes and covers wages in the period between 12 March and 31 August 2020. It will support around 280 000 undertakings. The aid amounts to 80% of the wage costs (including social security and health insurance contributions), capped at CZK 39 000 (approximately € 1,475) per month, for employees who cannot work because of a quarantine or a closure/restriction ordered by the authorities. Support is set at 60% of the wage cost, capped at CZK 29 000 (approximately € 1,100) per month, when the employer's business is affected in a different way by the coronavirus outbreak (reduced demand, unavailability of supply). The scheme aims at alleviating the employers' costs and avoiding lay-offs and at helping to ensure that employees can remain in continuous employment during the period for which the aid is granted.

• on 7 July 2020, a CZK 10 billion (approximately €370 million) Czech scheme to support enterprises active in the primary agricultural sector and in food and feed production affected by the coronavirus outbreak. The public support, which will take the form of direct grants, will be open to all enterprises active in the primary agricultural production sector (farmers) and to food and feed producers. The aid is specifically intended to ensure sufficient working capital for beneficiaries, which suffered a decrease in total earnings of at least 25%, compared to the same period in 2019. The measure is expected to support between 12,000 and 20,000 enterprises. The purpose of the scheme is to address the liquidity needs of farmers and to help them continue their activities during and after the outbreak.

• on 7 July 2020, a CZK 15 billion (approximately €550 million) Czech scheme to support self-employed that are particularly affected by the coronavirus outbreak. The public support will take the form of (a) a partial reduction of annual pension and state employment contributions for 2020, (b) a waiver of penalties related to remaining payments of contributions for 2019, and (c) postponing the monthly pre-payments of pension and State employment policy contributions for March-August 2020 until 31 December 2021. The scheme is open to self-employed active in all sectors. The aim of the scheme is to address the liquidity needs of the self-employed, to help them continue their activities during and after the outbreak.

• on 26 June 2020, a €2.6 million Czech scheme to support companies affected by the coronavirus outbreak. The public support will take the form of direct grants. The scheme will be open to companies active in Moravia-Silesia and is composed of two separate measures that will provide support to (i) micro-enterprises in the manufacturing sector; and (ii) companies of all sizes that operate tourist attractions. The aim of both measures is to address the liquidity needs of companies affected by the coronavirus outbreak, thus helping to preserve the continuity of economic activity during and after the outbreak.

• a CZK 1 billion (approximately €36.3 million) Czech scheme to support small and medium-sized enterprises (SMEs) active in the primary agricultural sector affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020 and 8 May 2020. The public support, which will take the form of direct grants, will be open to SMEs active in the primary agricultural production sector (farmers). The aid is specifically intended to partially reduce the outstanding amounts of operating bank loans to these SMEs and will cover up to 50% of the unpaid loan amount. The measure is expected to support approximately 5,000 SMEs. The purpose of the scheme is to address the liquidity needs of farmers and to help them continue their activities during and after the outbreak. The Commission found that the Czech scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed €100,000 per company and (ii) the scheme will run until 31 December 2020.

• a CZK 5 billion (approximately €184 million) Czech scheme to support retail businesses and service companies renting premises, which were limited or forbidden to carry out their activities due to the measures imposed by the government in the context of the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020 and 8 May 2020. The public support, which will take the form of direct grants, will cover 50% of the original rent due for the months of April, May and June 2020, on the condition that the owner of the premises agrees on a 30% reduction of the original rent. This aims at incentivising the private sector to mitigate the sudden liquidity shortages that the affected companies are facing due to the measures taken by the Czech government to limit the spread of the coronavirus. The Commission found that the Czech scheme is necessary, appropriate and proportionate to fight the health crisis, in line with Article 107(3)(b) TFEU, and the conditions set out in the Temporary Framework.

• on 15 May 2020, an approximately €18.5 billion (CZK 500 billion) Czech scheme for guarantees on loans to support lending to companies with up to 500 employees that are affected by the coronavirus outbreak. Under the scheme, the support will take the form of State guarantees on loans. The scheme will be managed by the Czech promotional bank, Českomoravská záruční a rozvojová banka, a.s. (CMZRB). The measure aims at limiting the risks associated with issuing loans to companies with up to 500 employees that are most severely affected by the economic impact of the coronavirus outbreak, enhancing access to external financing, thus ensuring the continuation of their activities.

• on 7 May 2020, a CZK 200 million (approximately €7.3 million) Czech aid scheme to support research and development (R&D) activities related to the coronavirus outbreak. Following the approval, on 15 April 2020, of a Czech scheme to support investment in the production of coronavirus relevant products, this scheme, the form of direct grants, will support coronavirus related R&D activities. It will be accessible to all companies in Czechia that are capable of carrying out relevant R&D projects in all sectors. The aim of the scheme is to support the development of innovative solutions to the coronavirus pandemic, such as medical and paramedical technologies and solutions including 3D printing systems and applications to facilitate logistics.

• on 5 May 2020, a Czech guarantee scheme for large companies with export activities affected by the coronavirus outbreak. Czechia notified to the Commission under the Temporary Framework guarantee scheme to support lending to large exporting companies affected by the coronavirus outbreak. The support, in the form of an approximately €5.2 billion (CZK 142 billion) scheme for State guarantees on loans, will be accessible to large companies whose exports represent at least 20% of their yearly sales revenue. The scheme aims at limiting the risk associated with issuing loans to those exporting companies that are most severely affected by the economic impact of the coronavirus outbreak, thus ensuring the continuation of their activities. The scheme will be managed by the Czech export credit agency EGAP. The guarantees will support lending to those companies, but will not take the form of export aid contingent on export activities as it is not tied to concrete export contracts. On the contrary, it finances the general activity of the beneficiaries by facilitating their access to liquidity in the form of working capital loans and investment loans.

• a Czech aid scheme of up to CZK 1 billion (approximately €37 million) to support investments by small and medium-sized enterprises (SMEs) in the production of products that are relevant to the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020. The scheme will have an initial budget of CZK 300 million (approximately €11 million). The budget may be subsequently increased to up to CZK 1 billion (approximately €37 million). Under the scheme, public support will take the form of direct grants, and will cover 50% of the eligible costs companies have to bear to create production capacities to manufacture coronavirus-relevant products. The aim of the scheme is to enhance and accelerate production of products directly relevant to coronavirus. These include medicinal products such as vaccines, hospital and medical equipment including ventilators, protective clothing and equipment as well as diagnostic tools. The acquisition of infectious waste disposal facilities will also be supported.