EU-programmes as an EU-programmes as an instrument of regional instrument of regional

development in the Czech development in the Czech Republic – success and Republic – success and

problemsproblems

By May 1st By May 1st 2004 2004, the Czech Republic became member of the , the Czech Republic became member of the EU EU and so has had the possibility to profit from the big structural fonds and so has had the possibility to profit from the big structural fonds of the EUof the EU

With the exception of PragueWith the exception of Prague all Czech regions are Cíl 1 regions all Czech regions are Cíl 1 regions with the most possible support from EUwith the most possible support from EU

In the shortened stretch of time 2004-2006 the Czech Republic got In the shortened stretch of time 2004-2006 the Czech Republic got a total budget of 1,9 billion EUR from structural funds a total budget of 1,9 billion EUR from structural funds anand 0,9 billion d 0,9 billion EUR from cohesion fundsEUR from cohesion funds, f, foror the time the time 2007-2013 2007-2013 it will be aboutit will be about 18 18 billionbillion fromfrom structural structural fonds fonds aand nd aboutabout 9 9 billionbillion fromfrom cohesion cohesion ffuunds nds

The money from structural funds are divided into the different The money from structural funds are divided into the different operational programmesoperational programmes

The quotas for support are at an average of aboutThe quotas for support are at an average of about 45 % 45 % of the of the investive costsinvestive costs, , but can rise up to an amount of but can rise up to an amount of 90 % 90 % of the of the investive costsinvestive costs..

NUTS 2 regions

OperationOperationalal Programme Programmess (OP) (OP)

Divided by topicsDivided by topics (so (so called called sseecctortoralal pprogrammerogrammess))• 2004-2006: 5 2004-2006: 5 pprogrammerogrammess

• 2007-2013: 17 2007-2013: 17 pprogrammerogrammess

Divided by regionsDivided by regions ( (rregional operationegional operationaal l pprogrammerogrammess) ) • 2007-2013: 7 2007-2013: 7 pprogrammerogrammess ( (rregional operationegional operationaal l

pprogrammerogrammess))

Contents of theContents of the OP 2004-2006 OP 2004-2006 ((sumssums in Mio. EUR) in Mio. EUR)

IndustrIndustryy aand nd enterprisesenterprises

(Czechinvest)

387,8387,8

InfrastruInfrastruccturturee 334,7334,7

Development ofDevelopment of hhumanuman ressourceressourcess

(ESF)(ESF)

422,43422,43

Development of rural Development of rural areas and areas and

multifunctional multifunctional agricultureagriculture

250,61250,61

commoncommon regional regional operationoperationaal l

pprogrammrogrammeses

599,0599,0

Highest demandHighest demand ( (fastfast, , simplesimple iinvestnvestmentsments) ) X X pproblemroblemss with thewith the ESF ESF pprogrammrogrammee ( (tootoo much moneymuch money, , small projectssmall projects, , not used in a not used in a constructive and effective wayconstructive and effective way))

Orientation concerning the contents of Orientation concerning the contents of thethe OP 2007-2013 OP 2007-2013

Aim: convergenceAim: convergence ( (aall ll rregionegionss besidesbesides Prag Pragueue))

OP OP iinfrastrunfrastruccturturee ( (Min. of transportMin. of transport)) 5 759,15 759,1infrastructureinfrastructure

OP OP environmental protection environmental protection ((Min. of the Environment)Min. of the Environment) 4 917,94 917,9

OP OP enterprisesenterprises aand nd ininnovationnovationss ( (Min. of economicsMin. of economics)) 3 041,33 041,3enterprisesenterprisesOP OP research and development for innovationsresearch and development for innovations ( (Min. of Min. of

educationeducation)) 2 070,72 070,7

OP OP human resource management and employmenthuman resource management and employment (Min(Min. for employment and social affairs. for employment and social affairs)) 1 837,41 837,4

hhumanuman ressourressourcescesOP OP education for competitivenesseducation for competitiveness 1 828,71 828,7

7 x 7 x regionalregional OP OP ((Office of regional councilOffice of regional council)) 4 659,04 659,0rregionalegional development development

incorporatedincorporated OP OP 1 553,01 553,0

OP OP ttechniechnical assistancecal assistance (Min (Min. . ffoor r rregional egional developmentdevelopment)) 263,0263,0

Aim:Aim: rregional egional competitivenesscompetitiveness aand nd employmentemployment (Prag (Pragueue))

OP Praha OP Praha competitivenesscompetitiveness (Prag (Pragueue)) 264,0264,0

OP Praha OP Praha adaptabilityadaptability (Prag (Pragueue)) 108,3108,3

Aim:Aim: Europ Europeanean regional cooperation (selectedregional cooperation (selected rregionegionss of CRof CR))

7 x OP 7 x OP iinternational nternational cooperationcooperation (Min (Min. for regional . for regional developmentdevelopment)) 389389

The most important restrictions and problems when implementing the The most important restrictions and problems when implementing the Operational Programmes;Operational Programmes;

recommendations to speed up the cash drain and the preparation for the recommendations to speed up the cash drain and the preparation for the programme period 2007-2013programme period 2007-2013

Administration of payout of costs for the final recipients:Administration of payout of costs for the final recipients: Administration doesn‘t work continuously; accumulation of applications Administration doesn‘t work continuously; accumulation of applications

when calculating the payments when calculating the payments

Legislative:Legislative: Furtheron unsufficient linking of the Czech with the European legislativeFurtheron unsufficient linking of the Czech with the European legislative It is necessery to solve new rising contradictions in the Czech legislative It is necessery to solve new rising contradictions in the Czech legislative

and the regulations of the EU-Commissionand the regulations of the EU-Commission

Information and public relations:Information and public relations: Too much information about support programmes; the quality and the Too much information about support programmes; the quality and the

extent of information are variable; they are complex and confusing, extent of information are variable; they are complex and confusing, teterrminologically not uniform and often not even up to date. minologically not uniform and often not even up to date.

Unsufficient information about the accepted applicationsand about Unsufficient information about the accepted applicationsand about successful projects, best practicesuccessful projects, best practice

Unsufficient work of public relations in the regions about the Operational Unsufficient work of public relations in the regions about the Operational Programmes for the final recipientsProgrammes for the final recipients

Examples for the public presentation of the project and the supporting Examples for the public presentation of the project and the supporting institutionsinstitutions

Evaluation and selection of the projects, agreement about the Evaluation and selection of the projects, agreement about the contract/passing of a resolution:contract/passing of a resolution:

Long lasting process of the evaluation and selection of the projects, of the Long lasting process of the evaluation and selection of the projects, of the agreements about the contract, the passing of a resolution, and so delay of agreements about the contract, the passing of a resolution, and so delay of the project implementationthe project implementation

Decisive delay when deciding on the applications, agreements about the Decisive delay when deciding on the applications, agreements about the contract/ signing of the agreement and other administrative services by the contract/ signing of the agreement and other administrative services by the officials of the implementation structureofficials of the implementation structure

Deficits in the manner of selecting projects; low transparency of procedure Deficits in the manner of selecting projects; low transparency of procedure of classification and selection of the project applications, deficits of the of classification and selection of the project applications, deficits of the criteria of evaluation, low comprehensibility of the conditions for applicantscriteria of evaluation, low comprehensibility of the conditions for applicants

Applictions for projects and their administration:Applictions for projects and their administration: Unsufficient or no information about the current status of the project Unsufficient or no information about the current status of the project

application (the applicant is informed insufficiently about the procedure of application (the applicant is informed insufficiently about the procedure of the project‘s processing) the project‘s processing)

Structure of applying stresses the applicant too much; the conditions for the Structure of applying stresses the applicant too much; the conditions for the project processing are often not clear and often obligatory structures of the project processing are often not clear and often obligatory structures of the documents are missingdocuments are missing

Unsufficient reserves of qualified project plans and applicationsUnsufficient reserves of qualified project plans and applications

Adjustment of the implementation systemsAdjustment of the implementation systems:: Problems when adjusting the implementation systemsProblems when adjusting the implementation systems Complications with the communication and cooperation between the scopes Complications with the communication and cooperation between the scopes

(subjects)(subjects) Unsufficient supply with staff in the institutions dealing with implementationUnsufficient supply with staff in the institutions dealing with implementation

MethodiMethodical managementcal management:: Liability of the predetermined methodics from the managing institutions of Liability of the predetermined methodics from the managing institutions of

the operational programmesthe operational programmes aand nd their linking to the documentation of their linking to the documentation of transaction on all levels of the projects‘ administrationtransaction on all levels of the projects‘ administration

Monitoring:Monitoring: Unsufficiently working monitoring systemUnsufficiently working monitoring system Difficult passing on of the projects‘ indicatorsDifficult passing on of the projects‘ indicators to the ministries involvedto the ministries involved,,

whose targets are often estimated too high and can so be reached only with whose targets are often estimated too high and can so be reached only with difficultiesdifficulties

Limited possibility of advance paymentLimited possibility of advance payment

ProblemProblems of raising a credit for the applicantss of raising a credit for the applicants

PolitiPoliticalcal influenceinfluence! !

((on all levelson all levels))

Effects on the economical or regional Effects on the economical or regional development are difficult to be evaluateddevelopment are difficult to be evaluated::

a)a) extern extern eevaluvaluationation: in 2-3 : in 2-3 yearsyearsb)b) intern intern eevaluvaluationation– – countablecountable – – pproduroducctivittivityy – –

((ff..exex.„.„how manyhow many kkm m roads were reconstructed roads were reconstructed for onefor one EURO “), EURO “), no data availableno data available

c)c) exceedingexceeding institution institutionalal ddensitensityy – – the applicant‘s the applicant‘s way to get the money (via a number of way to get the money (via a number of implementation subjects) is too longimplementation subjects) is too long

d)d) Not correctly set systems of indicators – Not correctly set systems of indicators – problems are expected for the finalproblems are expected for the final eex-post x-post evaluation of theevaluation of the operation operationaal l pprogrammerogrammess

The aim isThe aim is: : to useto use ( (exhaust/use upexhaust/use up)) the the moneymoney aand nnd not to reach/achieve ot to reach/achieve

something and to use the money as a something and to use the money as a meansmeans = = must be criticizedmust be criticized