Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure CZ-2021-17/1816 – Updated – measures in Czechia
|Country||Czechia , applies nationwide|
|Time period||Temporary, 19 April 2021 – 31 December 2021|
|Context||COVID-19, European Semester|
|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|
|Measure added||08 April 2021 (updated 31 January 2022)|
COVID – Uncovered costs is a new programme, which - together with COVID 21 - replaces most of the previous sectoral compensation programmes:
COVID - Uncovered costs is an alternative to the COVID 2021 programmme . Which means that companies can choose only one of these two programmes.
The programme intends to cover part of the uncovered fixed costs and help businesses which are in a loss due to anti-pandemic measures. The support is for companies regardless of the specific sector, form of ownership or number of employees.
Applicant for the support has to prove the decrease at least of 50% in the company's turnover in comparison with relevant period. Comparison period is chosen by applicant (1 January 2019 till 31 March 2019, or the same period in 2020). The support covers relevant period of 1 January 2021 till 31 March 2021. Subsidies already provided from other compensation programmes will be deducted.
The total allocation of the programme is CZK 6,000,000,000 (€230,017,251 approx.). The support covers 60% of uncovered costs in relevant period, for state-owned entities or territorial self-governments the support covers 40% of uncovered costs.
Maximum amount of the support per applicant is CZK 40,000,000 (€1,533,448).
Applications can be submitted from 19 April 2021 until 19 July 2021 by Ministry of Industry and Trade of the Czech Republic, Ministerstvo průmyslu a obchodu České republiky, MPO .
No information available yet.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Company / Companies
National Recovery and Resilience Facility
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
In general supportive, however, with comments. Employers´ organisations appreciate that the government has unified different sectoral programmes in two - COVID Uncovered costs and COVID 21. However, the largest employer organisation in Czechia, Confederation of Industry of the Czech Republic, Svaz průmyslu a dopravy České republiky, SP ČR together with employer and business associations in HORECA sector appeal to government - with introduction on COVID Uncovered costs programme - not to cancel COVID Rent programme, which is, according to above mentioned organisations, functional and proofed.
Employers´ organisations also criticize, that the applicant have to prove the decrease at least of 50% in the company´s turnover, which makes impossible for many businesses with lower decrease in turnover to reach for the support. Also the level of the support, compensation of 60% of uncovered costs, is not sufficient according to employers' organisations.
Eurofound (2021), COVID – Uncovered costs, measure CZ-2021-17/1816 (measures in Czechia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/CZ-2021-17_1816.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.