Prague

The Czech Republic is a net recipient from the EU contributing Kc94bn to the EU budget between 2004 and the first half of 2006 and receiving Kc112.3bn, the Local Development Ministry said at a news conference today referring to data of the Finance Ministry.

“For the time being the surplus is not very big,” Deputy Local Development Minister for European affairs Daniel Tousek said.

In the previous budget period, the Czech Republic ranked among countries with the worst results as regards drawing EU funds. Among the EU newcomers, it occupied the last three positions together with Cyprus and Latvia.

Tousek blamed it on the financing method, with projects financed after their implementation. Such a method is a big burden for public budgets and the private sector, he said.

In the next budget period, emphasis will be laid on continuous financing preventing delays in money transfers.

Expert on structural funds Petr Pazout of Optimus Consult & Invest, however, said that financing projects after their implementation is one of the causes of delay in drawing EU funds in the 2004-2006 budget period. Late calls for participation in some operational programmes or lack of interest in certain measures on the part of end users can be bigger problems, said Pazout.

The Local Development Ministry wants to change management of operational programmes in the next budget period so as to improve drawing money from the EU, said Tousek.

Under the EU rules, the Czech Republic can draw money from the EU also after the expiry of the 2004-2006 budget period.

In 2007 to 2013, the Czech Republic may get Kc700bn from EU funds.

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