Factsheet for case CZ-2020-26/942 – measures in Czechia
|Country||Czechia , applies nationwide|
|Time period||Temporary, 26 June 2020 – 21 January 2021|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Soňa Veverková (Research Institute for Labour and Social Affairs) and Eurofound|
|Case created||08 July 2020 (updated 23 October 2020)|
COVID – Rent is a subsidy programme prepared by the Ministry of Industry and Trade of the Czech Republic (Ministerstvo průmyslu a obchodu České republiky, MPO ČR . This programme helps entrepreneurs who have been prohibited due to the extraordinary measures from the sale of goods and services in their establishments, and thus limited in ability to pay rent.
The idea of the first call of the programme opened 26 June 2020 for the period 1 April 2020 to 30 June 2020 is to divide rental costs between three entities – tenants, landlords and the state. Under this programme, the state would bear 50% of costs, landlords 30% and tenants 20%. The total amount of the programme is CZK 5,000,000,000 (€186,150,410 approx.).
The second call, opened 21 October for the period 1 July to 30 September 2020, covers 50% of the rent, if the tenant cover also 50% (landlords´ participation is not required). The total amount of the programme is CZK 3,000,000,000 (€110,354,975 approx.).
Eligible for the subsidy is an entrepreneur:
There are also other conditions must be fulfilled before the application for support is filed: * the landlord has granted a discount of at least 30% for the period from 1 April 2020 to 30 June 2020 (for the first call only), * entrepreneur has paid at least 50% of the rent for the same period (for both calls).
The maximum amount of the subsidy for an applicant is 50% of the rent but no more than CZK 10,000,000 (€374,812) in both calls, e. g. maximum amount is CZK 20,000,000 (€749,624).
As of 29 September 2020, there were 15,656 applications registered with the total amount of CZK 2,231,081,710 required (€82,540,944 approx.). From these applications, 10,161 applications were approved in the total amount of CZK 1,395,022,860 (€51,610,169 approx.), however, there are still many applications in process.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Consultation through tripartite or bipartite social dialogue bodies||Consultation through tripartite or bipartite social dialogue bodies|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners, which are members of the tripartite body (Council of economic and social agreement, Rada hospodářské a sociální dohody, RHSD) were informed and consulted in both formal (requested by institutional settings) and informal ways. They are not involved in the management of policy measures.
Eurofound (2020), COVID-Rent support for entrepreneurs, case CZ-2020-26/942 (measures in Czechia), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.