This Decision is addressed to the Czech Republic.

4.The release of instalments in accordance with the Financing Agreement shall be conditional on available funding and a decision by the Commission, taken in accordance with Article 24 of Regulation (EU) 2021/241, that Czechia has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the recovery and resilience plan. Subject to the entry into force of the legal commitments referred to in paragraph 1, to be eligible for payment, milestones and targets shall be completed no later than 31 August 2026.

3.The pre-financing shall be released subject to the entry into force and in accordance with the Financing Agreement provided for in Article 23(1) of Regulation (EU) 2021/241. Pre-financing shall be cleared by being proportionally deducted against the payment of the instalments.

2.The Union financial contribution shall be made available by the Commission to Czechia in instalments in accordance with the Annex. An amount of EUR 914 640 681 shall be made available as a pre-financing payment, equal to 13 per cent of the financial contribution. The pre-financing and instalments may be disbursed by the Commission in one or several tranches. The size of the tranches shall be subject to the availability of funding.

1.The Union shall make available to Czechia a financial contribution in the form of non-repayable support amounting to EUR 7 035 697 549. An amount of EUR 3 537 379 398 shall be available to be legally committed by 31 December 2022. Subject to the update provided for in Article 11(2) of Regulation (EU) 2021/241 calculating an amount for Czechia equal to or more than this amount, a further amount of EUR 3 498 318 151 shall be available to be legally committed from 1 January 2023 until 31 December 2023.

The assessment of the recovery and resilience plan of Czechia on the basis of the criteria provided for by Article 19(3) of Regulation (EU) 2021/241 is approved. The reforms and investment projects under the recovery and resilience plan, the arrangements and timetable for monitoring and implementation of the recovery and resilience plan, including the relevant milestones and targets, the relevant indicators relating to the fulfilment of the envisaged milestones and targets, and the arrangements for providing full access by the Commission to the underlying relevant data are set out in the Annex to this Decision.

Article 1 Approval of the assessment of the recovery and resilience plan

(51)This Decision should be without prejudice to the outcome of any procedures relating to the award of Union funds under any other Union programme than Regulation (EU) 2021/241 or to procedures relating to distortions of the operation of the internal market that may be undertaken, in particular under Articles 107 and 108 of the Treaty. It does not override the requirement for Member States to notify instances of potential State aid to the Commission under Article 108 of the Treaty,

(50)Czechia has requested pre-financing of 13% of the financial contribution. That amount should be made available to Czechia subject to the entry into force and in accordance with the Financing Agreement provided for in Article 23(1) of Regulation (EU) 2021/241.

(49)The support to be provided is to be financed from the borrowing by the Commission on behalf of the Union on the basis of Article 5 of Council Decision (EU, Euratom) 2020/2053. The support should be paid in instalments once Czechia has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the recovery and resilience plan.

(48)In accordance with Article 11(2) of Regulation (EU) 2021/241, the calculation of the maximum financial contribution for Czechia is to be updated by 30 June 2022. As such, in accordance with Article 23(1) of that Regulation, an amount for Czechia should be made available now for a legal commitment by 31 December 2022. Where necessary following the updated maximum financial contribution, the Council, on a proposal from the Commission, should amend this Decision to include the updated maximum financial contribution without undue delay.

(47)The estimated total cost of the recovery and resilience plan of Czechia is CZK 179 142 931 000, which equals EUR 7 035 697 549 on the basis of the EUR CZK ECB reference rate of 1 June 2021. As the recovery and resilience plan satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241 and, furthermore, as the amount of the estimated total costs of the recovery and resilience plan is lower than the maximum financial contribution available for Czechia, the financial contribution allocated for Czechia’s recovery and resilience plan should be equal to the amount of the estimated total costs of the recovery and resilience plan.

(46)Following the positive assessment of the Commission concerning the Czech recovery and resilience plan with the finding that the plan satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241, in accordance with Article 20(2) of that Regulation, this Decision should set out the reforms and investment projects necessary for the implementation of the plan, the relevant milestones, targets and indicators, and the amount made available from the Union for the implementation of the plan in the form of non-repayable financial support.

(45)The Czech authorities have conducted a consultation process prior to the submission of the plan, in accordance with the national legal framework, mainly through a tripartite forum with the representatives of social partners. The plan also underwent a standard inter-ministerial consultation and a parliamentary debate. To ensure ownership by the relevant actors, it is crucial to involve all local authorities and stakeholders concerned, including social partners, throughout the implementation of the investments and reforms included in the plan.

(44)The plan proposes several projects with a cross-border dimension, mostly with regard to the digital transition. It supports research and development in enterprises and European and national Digital Innovation Hubs to stimulate the digital transformation of SMEs, as well as the set-up of a European facility for testing and experimentation. The plan envisages several investments, which form part of cross-country initiatives or networks, including a new European AI excellence centre, a potential IPCEI on Microelectronics and Connectivity with a particular focus on microprocessors, the creation and capacity building of knowledge transfer for digital technologies, and the European Blockchain Service Infrastructure. The plan also supports the construction of Quantum Communication Infrastructure, the participation of Czechia in 5G networks and the application of 5G-ecosystems across the Member States.

(43)The plan includes a security-self assessment for investments in digital capacities and connectivity in accordance with the Article 18(4), point (g) of the Regulation (EU) 2021/241. The plan foresees investments in digital infrastructure such as high-capacity and 5G networks, ICT infrastructure including cloud for eGovernment, cybersecurity developments and quantum communication infrastructure.

(42)Czechia’s recovery and resilience plan contains a series of measures that are expected to address the country’s challenges in the area of gender equality and equal opportunities for all. As regards gender equality, the plan is designed to increase the labour market participation of women with young children through ample investment in pre-school facilities for children below the age of three. The plan also includes a legislative reform to better target active labour market policies at the most vulnerable groups. The part of the plan addressing inequalities in education includes reinforced support for schools with a high proportion of children from disadvantaged socio-economic backgrounds, training and mentoring of teachers dealing with heterogeneous groups of pupils, and additional tutoring for children at risk of failure due to prolonged school closures. The plan also envisages investment in digital equipment of schools to ensure access to learning for disadvantaged pupils and students. However, the plan does not mention explicitly how the measures are expected to tackle the challenges faced by the Roma community. The situation and needs of people with disabilities are addressed in several parts of the plan, including in relation to the new construction code, renovation of buildings and their improved accessibility, digitalisation, eHealth and social care. The challenges faced by older people are also addressed, in particular through improving the quality and accessibility of long-term care, social care and healthcare. Specific investment in energy efficiency for households of disadvantaged social groups is planned.

(41)The Czech recovery and resilience plan presents a comprehensive package of measures with a strong investment focus. The plan is built on six priorities, namely digital transformation, sustainable transport infrastructure, education and labour market, institutions and business support, research and innovation, and health and resilience of the population. Those priorities are implemented through twenty six components. Synergies are present across a number of components. The plan ensures an overall balance between reforms and investments. Yet, for some components, investment is not accompanied by relevant reforms. The need for establishing systematic complementarities with Cohesion Policy funding is evident and some examples are presented in the components. Demarcation lines are sufficiently developed but should also depend on the finalisation of the Partnership Agreement and Cohesion policy programmes.

(40)In accordance with Article 19(3), point (k) and section 2.11 of Annex V to Regulation (EU) 2021/241, the plan includes to a medium extent (Rating B) measures for the implementation of reforms and public investment projects that represent coherent actions.

(39)A robust anti-corruption framework is indispensable in preventing, detecting and correcting irregularities like fraud, corruption, or conflict of interests when using the funds under Regulation (EU) 2021/241. For the prevention, detection and correction of fraud, corruption and conflicts of interests the strengthening of the legislative framework to better prevent corruption is required in the context of the Plan’s implementation.

(38)Czechia has indicated that an information system for the management and reporting of the milestones and targets is under discussion in order to meet specific management and reporting requirements described in the recovery and resilience plan. A milestone should ensure that a repository system for monitoring the implementation of the Facility should be put in place and be operational by the time of the first payment request. The system should include, as a minimum, the following functionalities: (a) ensure the collection of data and monitoring of the achievement of milestones and targets; and (b) collect, store and ensure access to the data required by Article 22(2)(d)(i) to (iii) of Regulation (EU) 2021/241, pursuant to its Article 22(2)(e).

(37)Although the description of the internal control system and other arrangements to prevent, detect and correct conflict of interests is acceptable, taking into account the serious deficiencies in the Czech management and control system to avoid conflict of interests, as verified by a recent audit on other EU programmes, a dedicated audit on effectiveness of the internal control system shall be undertaken by the audit body. The report shall provide an unqualified audit opinion on the effectiveness of the internal control system to avoid conflict of interests at the level of the recovery and resilience plan, in particular that (i) collection, storage and processing data in relation to all final recipients, including all beneficial owners as established by Article 3(6) of the Directive (EU) 2015/849, (ii) internal control system to prevent, detect and correct conflict of interests situations is in accordance with Article 61 of the Financial Regulation, and (iii) national control procedures to avoid conflict of interests situations for all beneficial owners are effective. In accordance with Article 20(5)(e) of Regulation (EU) 2021/241, Czechia should implement these measures in order to comply with Article 22 of that Regulation, by confirming their implementation with the first payment request. The report should describe identified weaknesses and deficiencies and corrective actions taken.

(36)Additional milestones are set requiring (i) a compliance review of the national procedures to ensure that the application of beneficial ownership in the context of the Facility’s internal control system is fully aligned with the definition of ‘beneficial owners’ as defined in Article 3, point 6 of Directive 2015/849, as amended by Directive 2018/843, (ii) the coordinating body to issue guidance on the avoidance and management of conflict of interests under the Financial Regulation and applicable national law for the component owners and other entities implementing reforms and investments under the recovery and resilience plan. This should further strengthen the measures to protect the EU budget against fraud and irregularities, (iii) the audit body to adopt an audit strategy ensuring the independent and effective audit of the RRF implementation, and (iv) the Managing Council of the national recovery and resilience plan to approve and implement procedures for the system to collect, store and process data in relation to all final recipients, including all beneficial owners as established by Article 3 of the Directive (EU) 2015/849. All these milestones shall be fulfilled before the first payment request is submitted to the Commission.

(35)The internal control system described in the recovery and resilience plan, as complemented by the additional measures contained in this Decision as milestones, is based on robust processes and structures and clearly identifies actors and their roles and responsibilities for the performance of the internal control tasks. The internal control system consists of the levels: (i) management verifications carried out by component owners and coordinating body at the level of the Ministry of Industry and Trade; and (ii) audits carried out by the national audit body centralised at the Ministry of Finance. Altogether, the description of the internal control system and other relevant arrangements in the recovery and resilience plan, including for the collection and making available of data on final recipients are acceptable with respect to preventing, detecting and correcting corruption, fraud, conflict of interests when using the funds under Regulation (EU) 2021/241 and to avoid double funding under that Regulation and other Union programmes.

(34)In accordance with Article 19(3), point (j) and section 2.10 of Annex V to Regulation (EU) 2021/241, the arrangements proposed in the recovery and resilience plan, to the extent they are complemented by the additional measures contained in this Decision as milestones are adequate (Rating A) to prevent, detect and correct corruption, fraud and conflicts of interests when using the funds provided under that Regulation, and the arrangements are expected to effectively avoid double funding under that Regulation and other Union programmes. This is without prejudice to the application of other instruments and tools to promote and enforce compliance with EU law, including for preventing, detecting and correcting corruption, fraud and conflict of interest, and for protecting the Union budget in line with Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council.

(33)Czechia has provided estimates relying on appropriate justification, evidence and methodology for the majority of the costs of the measures included in the plan. Costing information and supporting documents have been provided to a medium extent. In many cases, costs have been benchmarked with reference to past projects or tender data of similar investments carried out in Czechia or other Member States. Where this was not possible, cost estimates have mostly been provided using bottom-up approaches based on market prices of the large cost drivers. For several smaller measures, detailed explanations of the cost estimates or supporting documentation have been limited. According to that information, there are no indications that the overall reasonability, plausibility and additionality of the cost estimates would be impaired. Finally, the estimated total cost of the recovery and resilience plan is in line with the principle of cost-efficiency and is commensurate to the expected national economic and social impact.

(32)In accordance with Article 19(3), point (i) and section 2.9 of Annex V to Regulation (EU) 2021/241, the justification provided in the plan on the amount of the estimated total costs of the recovery and resilience plan is to a medium extent (Rating B) reasonable and plausible, is in line with the principle of cost efficiency and is commensurate to the expected national economic and social impact.

(31)Member States should ensure that financial support under the Facility is communicated and acknowledged in line with Article 34 of Regulation (EU) 2021/241. Technical support may be requested under the Technical Support Instrument or other sector-specific tools such as the Horizon Policy Support Facility to assist Member States in the implementation of their plan.

(30)The national arrangement for the implementation of the recovery and resilience plan are set out in Government resolution No 467 of 17 May 2021. The Managing Council of the national recovery and resilience plan is the highest decision-making and approval body with the responsibility for the overall coordination and monitoring of the recovery and resilience plan. The Ministry of Industry and Trade, as the responsible authority for the recovery and resilience plan and its implementation, is responsible for coordination, monitoring and reporting of the recovery and resilience plan and is the main point of contact for the Commission. That body should draw up requests for payments to the Commission, once the component owners declare that the respective milestones have been fulfilled and the audit body at the Ministry of Finance carries out the system audit, which includes substantive testing of declared milestones and targets. Following a recent audit on other EU programmes, the Ministry of Industry and Trade has received a qualified audit opinion due to the absence of effective measures targeting the prevention, detection and correction of cases of conflict of interest. Dedicated milestones shall be established to ensure that those weaknesses will have been addressed before the first payment request.

(29)In accordance with Article 19(3), point (h) and section 2.8 of Annex V to Regulation (EU) 2021/241, the arrangements proposed in the recovery and resilience plan, to the extent they are complemented by the additional measures contained in this Decision as milestones, are minimum (Rating B) to ensure effective monitoring and implementation of the recovery and resilience plan, including the envisaged timetable, milestones and targets, and the related indicators.

(28)Sizeable investments are expected to bring lasting changes to the Czech economy. The investment in sustainable modes of transport, such as railways, and in energy efficient renovation of housing stock and public buildings, should reduce air pollution, aid the green transition and contribute to territorial cohesion. The investments in innovative start-ups, SMEs and large enterprises through various funding schemes, coupled with the strengthening of the innovation ecosystem and public-private cooperation and investment in very high-capacity networks, should foster innovation and the competitiveness of Czech businesses, whilst contributing to the green and digital transitions. The planned investments for the digital transition of Czechia’s justice system have a good potential to strengthen its efficiency and resilience and improve access to justice. Healthcare reforms are supported by investment in specialised care, eHealth, screening programmes and comprehensive rehabilitation care as well as in excellent research in selected healthcare fields, which may improve health outcomes. Investments in education, training and social care aid social cohesion and contribute to cushioning the potential impact of changing labour market trends and demographics. Those investments are complemented by further investment in project preparation, training, awareness raising, methodological and analytical support at the central, regional and local levels to foster the green and digital transitions and maximise the impact and the absorption of additional resources, including funds from the Recovery and Resilience Facility. The lasting impact of the plan may also be enhanced through synergies between the plan and other programmes financed by the cohesion policy funds, notably by addressing in a substantive manner the deeply rooted territorial challenges and promoting balanced development.

(27)The recovery and resilience plan of Czechia presents a set of reforms and investments with a focus on the latter, which have the potential to have a lasting impact on Czechia. The plan introduces measures aiming to bring structural changes in public administration, transport, energy savings and energy resources of households, skills and education, anti-corruption, research and innovation and access to health and long-term care. The plan puts forward an ambitious agenda for the digitalisation of business and a supportive recovery agenda for strengthening the innovation ecosystem, which should foster sustainable growth and increase the competitiveness of Czechia.

(26)In accordance with Article 19(3), point (g) and section 2.7 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to have a lasting impact on Czechia to a large extent (Rating A).

(25)The reforms should ensure that changes of the digital transformation remain sustainable and effective. Under the Czech plan, the provision of eGovernment services and eHealth should be expanded, which is expected to increase the efficiency of public administration and improve the business environment. Changes to the construction permission procedure and its digitalisation should be implemented to speed up and simplify the relevant processes. Reforming the curricula in primary and secondary education should support the development of digital literacy of pupils in Czechia. The plan also introduces an improved governance model to oversee the digital transformation and digital innovation effectively and to support technology start-ups. Hence, the plan is expected to address important aspects of digital transformation and the digital ecosystem as a whole, and thereby improve the competitiveness of the Czech economy.

(24)The plan puts forward ambitious measures for the digital transformation of the Czech economy taking a comprehensive approach, which contributes to the development of the national layer of the European digital ecosystem. The proposed measures combine investing in very high-capacity and 5G networks, technological demonstration projects, building quantum communication infrastructure, aiding companies in exploiting the opportunities of digital innovation, and facilitating the transfer of know-how with the help of digital innovation hubs and testing and experimentation centres. In order to respond to the changing needs of the labour market, the recovery and resilience plan also promotes digital skills through upskilling and reskilling programmes as well as a digital reform of education. Measures to provide teachers and pupils with digital skills are combined with the provision of IT equipment and connectivity to schools and pupils, while taking into account regional and social disparities.

(23)In accordance with Article 19(3), point (f) and section 2.6 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan contains measures that contribute to a large extent (Rating A) to the digital transition or to addressing the challenges resulting from it. The measures supporting digital objectives account for an amount which represents 22,1% of the plan’s total allocation calculated in accordance with the methodology of Annex VI to Regulation (EU) 2021/241.

(22)Reforms and investments related tonature protection and water management are expected to help address to some extent the challenges Czechia faces with respect to climate adaptation and to the protection of water sources, nature and biodiversity.

(21)Investments in renewable energy sources, modernisation of district heating distribution networks, replacement of coal-fired boilers and improving the energy efficiency of residential and public buildings are expected to help Czechia achieve its 2030 decarbonisation objectives and to support the transition to a circular economy. The investments in gas and biomass are subject to specific conditions and should be guided by the sustainability criteria for renewable energy sources to be adopted by Czechia. The investments in sustainable transport should improve railway infrastructure and clean mobility infrastructure, including electro-mobility. That is expected to boost the overall mobility ecosystem, which is key for the Czech economy.

(20)In accordance with Article 19(3), point (e) and section 2.5 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan contains measures that contribute to a large extent (Rating A) to the green transition, including biodiversity, or to addressing the challenges resulting therefrom. The measures supporting climate objectives account for an amount which represents 41,6% of the plan’s total allocation, calculated in accordance with the methodology of Annex VI to Regulation (EU) 2021/241. In accordance with Article 17 of Regulation (EU) 2021/241, the recovery and resilience plan is consistent with the information included in the National Energy and Climate Plan 2021-2030.

(19)In accordance with Article 19(3), point (d) and section 2.4 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to ensure that no measure (Rating A) for the implementation of reforms and investments projects included in the recovery and resilience plan does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852 of the European Parliament and of the Council (the principle of ‘do no significant harm’). Czechia has conducted a ‘do no significant harm’ assessment of measures included in the plan. The potential harmful environmental impact of all relevant measures should be addressed through appropriate assurances, including relevant milestones and targets, ensuring that the applicable environmental criteria are met. Where needed, milestones should be established to ensure the implementation of mitigating measures to avoid significant harm. That is the case for measures supporting the modernisation of district heating distribution networks, replacement of coal-fired boilers by gas-condensing and biomass-based boilers in residential and public buildings, and flood protection.

(18)The investment in public transport networks and digital connectivity infrastructure is particularly relevant for structurally disadvantaged regions and low-wage earners in urban areas. Measures are also expected to support the decarbonisation of district heating and energy savings of households. In addition, the investment in replacing polluting coal-fired heating systems by heat pumps and biomass boilers in residential buildings of low-income families should decrease energy poverty and reduce the costs of green investment. The social needs of the vulnerable should also be supported by easier access to health screening programmes and by increased capacity in social care and investment in social care infrastructure.

(17)The recovery and resilience plan contributes to addressing several social challenges relevant for Czechia and supports the implementation of the European Pillar of Social Rights. The measures are expected to support social cohesion and address multiple challenges in that field. The provision of very-high-capacity networks to rural areas is expected to mitigate the urban/rural divide in access to connectivity. Reinforced support of schools with a higher share of pupils from a disadvantaged socio-economic background and IT equipment for disadvantaged pupils and students should help address inequalities in education. Increasing pre-school education and training capacities should reinforce equal opportunities and foster women’s labour market participation. Other important measures addressing the needs of children include curricular reforms to strengthen digital competences of pupils and the use of digital resources.

(16)The plan addresses those weaknesses and vulnerabilities in particular through channelling financial and non-financial support to SMEs, large enterprises and projects, enabling them to participate in green and digital transition, investments into transport, measures aiming at improving the research and innovation ecosystem, promoting science-business cooperation and financing digitalisation and research and innovation in strategic sectors in accordance with the Smart specialisation strategy and providing early-stage financing to start-ups. Measures addressing the adaptability of the workforce include the revision of curricula and upskilling and reskilling actions, whereas the low labour market participation of women with small children is addressed by increasing the capacity of childcare facilities. The plan envisages measures to foster the use of eGovernment services, to simplify construction permission procedures and to enhance corruption prevention through legislative action, which should contribute to improving the business environment for private investors.

(15)Simulations by the Commission services show that the plan has the potential to increase the GDP of Czechia by between 0.8% and 1.2% by 2026. The recovery and resilience plan is expected to contribute to economic growth and job creation in Czechia. The plan coherently addresses several identified weaknesses of the economy, notably the industry’s exposure to the risks posed by automation and the green transition, the low levels of R&D funding for early-stage innovative firms, skill mismatch, low labour market participation of women and the low skilled and inefficiencies in public administration.

(14)In accordance with Article 19(3), point (c) and section 2.3 to Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to have a high impact (Rating A) on strengthening the growth potential, job creation, and economic, social and institutional resilience of the Member State, contributing to the implementation of the European Pillar of Social Rights, including through the promotion of policies for children and youth, and on mitigating the economic and social impact of the COVID-19 crisis, thereby enhancing the economic, social and territorial cohesion and convergence within the Union.

Contribution to growth potential, job creation and economic, social and institutional resilience and implementation of European pillar of social rights

(13)Long-term sustainability of public finances is however not addressed in the plan. Given the medium- to long-term nature of the challenge, the urgency to address it in the current economic situation is less evident than for the other recommendations. However, Czechia should continue to face medium risks for fiscal sustainability of public finances in the long term, mainly due to the costs of ageing. Improving long-term fiscal sustainability of the pension and healthcare systems thus remains an important challenge to address in the coming years. In addition, the plan takes into account regional disparities when addressing the recommendations only to some extent.

(12)The Council recommendations related to the immediate fiscal policy response to the pandemic can be considered as falling outside the scope of Czechia’s recovery and resilience plan, notwithstanding the fact that Czechia has generally responded adequately and sufficiently to the immediate need to support the economy through fiscal means in 2020 and 2021, in line with the provisions of the General Escape Clause of the Stability and Growth Pact.

(11)Those investments are to be supported by a reform of the procedure for granting construction permits, including digitalisation of the process, significantly reducing its length. eGovernment and anti-corruption measures are expected to improve the business environment further. The growth potential and competitiveness of the Czech economy should also be supported by R&D investment, which should target public-private cooperation, access to finance and non-financial support for innovative firms, notably SMEs, improvement of the innovation ecosystem, and it should also focus on industrial, environmental, transport, cultural, digital and healthcare areas. The Council recommendations related to labour market, skills and education are expected to be addressed through requalification schemes, company-based training life-long-learning opportunities, new childcare facilities, digital competences for teachers, an updated curriculum fostering digital skills and literacy and IT equipment for schools, as well as measures focusing on inequalities in education. Healthcare recommendations are expected to be addressed through reinforced cancer prevention and rehabilitation care, development of an eHealth portal fostering integrated care practices and support to education in healthcare. Further complementary actions include measures to improve long-term care.

(10)The plan includes a set of mutually reinforcing reforms and investments that contribute to effectively addressing all or a significant subset of the economic and social challenges outlined in the country-specific recommendations addressed to Czechia by the Council in the European Semester in 2019 and in 2020 notably in the fields of healthcare, skills and education, green and digital transition, transport, supporting businesses and research and innovation. The plan contributes to addressing the structural challenges identified in the country-specific recommendations as it includes a number of investments and reforms which are expected to trigger progress for the Czech economy and society. It focuses strongly on investments in the aforementioned fields in particular in energy, digital infrastructure and sustainable transport. In the energy field, Czechia plans to modernise district heating distribution networks, increase renewable energy sources, improve energy efficiency in residential and public buildings and replace coal-fired boilers for households. Digital and transport infrastructure projects focus on very high-capacity digital and railway networks, which should contribute to building modern and green foundations for future productivity growth.

(9)In accordance with Article 19(3), point (b) and section 2.2 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to contribute to effectively addressing all or a significant subset of challenges (Rating A) identified in the relevant country-specific recommendations, including fiscal aspects thereof addressed to the Member State concerned or challenges identified in other relevant documents officially adopted by the Commission in the context of the European Semester.

Addressing all or a significant subset of challenges identified in Country Specific Recommendations

(8)The plan envisages forward-looking measures facilitating the digital transformation and green transition of the Czech economy. Such measures include the expansion of eGovernment, including open data and eHealth services, investments in the digitalisation of the country’s justice system, the expansion of very high-capacity and 5G networks, digital innovation and digital skills, and the digitalisation of industry. The plan aims to increase the share of sustainable modes of transport, save energy and reduce greenhouse gas emissions, while contributing to climate mitigation and adaptation objectives, to the preservation and restoration of nature, and to the implementation of circular economy solutions. The measures address the specific socio-economic challenges faced by Czechia, by supporting the innovation ecosystem and skills development in education and training, while taking into account social disparities.

(7)The Czech recovery and resilience plan provides for a comprehensive and balanced response to the crisis caused by the pandemic. The plan includes measures that contribute to all six pillars as defined by Article 3 of Regulation (EU) 2021/241. The plan makes explicit references to the six pillars and how they are being addressed by the measures, and includes components contributing towards at least one or multiple pillars. The plan is composed of a set of investments and reforms focusing on key areas such as digitalisation, the green transition, education and training, access to financing, culture, research and innovation, and healthcare.

(6)In accordance with Article 19(3) point (a) and section 2.1 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan represents to a large extent (Rating A) a comprehensive and adequately balanced response to the economic and social situation, thereby contributing appropriately to all six pillars referred to in Article 3 of Regulation (EU) 2021/241, taking the specific challenges and the financial allocation of the Member State concerned into account.

(5)The implementation of the Member States’ recovery and resilience plans will constitute a coordinated effort of investment and reforms across the Union. Through the coordinated and simultaneous implementation of these reforms and investments and the implementation of cross-border projects, these reforms and investments will mutually reinforce each other and generate positive spillovers across the whole Union. Therefore, about one third of the impact of the Facility on Member States’ growth and job creation will come from spillovers from other Member States.

(4)The recovery and resilience plans should pursue the general objectives of the Recovery and Resilience Facility established by Regulation (EU) 2021/241 and of the EU Recovery Instrument set up by Council Regulation (EU) 2020/2094 in order to support the recovery in the aftermath of the COVID-19 crisis. They should promote the Union's economic, social and territorial cohesion by contributing to the six pillars referred to in Article 3 of Regulation (EU) 2021/241.

(3)On 1 June 2021, Czechia submitted its national recovery and resilience plan to the Commission, in accordance with Article 18(1) of Regulation (EU) 2021/241. That submission followed a consultation process, conducted in accordance with the national legal framework. The consultation included social partners, local and regional authorities and other relevant stakeholders. The national ownership of the recovery and resilience plans is underpinning their successful implementation and lasting impact at national level and credibility at Union level. Pursuant to Article 19 of Regulation (EU) 2021/241, the Commission has assessed the relevance, effectiveness, efficiency and coherence of recovery and resilience plan, in accordance with the assessment guidelines of Annex V to that Regulation.

(2)On 9 July 2019 and on 20 July 2020, the Council addressed recommendations to Czechia in the context of the European Semester. In particular, the Council recommended to take measures to support the economic recovery while safeguarding long-term fiscal sustainability and enhancing investment; to ensure the resilience of the health system, strengthen the availability of health workers, primary care and the integration of care, and deployment of eHealth services; to support employment through active labour market policies, the provision of skills, including digital skills, and access to digital learning; to support small and medium-sized enterprises by making greater use of financial instruments to ensure liquidity support, reducing the administrative burden and improving eGovernment; to front-load mature public investment projects and promote private investment to foster the economic recovery; to focus investment on the green and digital transitions, in particular on high-capacity digital infrastructure and technologies, clean and efficient production and use of energy, and sustainable transport infrastructure, including in the coal regions; to remove the barriers hampering the development of a fully functioning innovation ecosystem; to ensure access to finance for innovative firms and to improve public-private cooperation in research and development. Having assessed progress in the implementation of those country-specific recommendations at the time of submission of the recovery and resilience plan, the Commission finds that substantial progress has been achieved with respect to the recommendation on taking all necessary measures to effectively address the pandemic, sustain the economy and support the ensuing recovery.

(1)The COVID-19 outbreak has had a disruptive impact on the economy of Czechia. In 2019, the gross domestic product per capita (GDP per capita) of Czechia was 68 % of the EU average. According to the Commission’s Interim Summer 2021 forecast, the real GDP of Czechia declined by 5,6% in 2020 and is expected to decline by 1,9% cumulatively in 2020 and 2021. Longer-standing aspects with an impact on medium-term economic performance include maintaining productivity growth, which requires sustained structural reforms of education, the innovation ecosystem and governance, and targeted investment into infrastructures and R&D. Czechia is not yet fully prepared for the green and digital transitions. Technological changes, such as the automation of production processes, are likely to have a significant impact on Czechia’s economy, given the exposure of its large manufacturing sector, including automotive production. In addition, the pension and healthcare systems pose long-term sustainability risks to public finances and the economy.

Having regard to the proposal from the European Commission,

Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility and in particular Article 20 thereof,

Having regard to the Treaty on the Functioning of the European Union,

on the approval of the assessment of the recovery and resilience plan for Czechia

on the approval of the assessment of the recovery and resilience plan for Czechia

EUROPEAN COMMISSION Brussels, 19.7.2021 COM(2021) 431 final ANNEX

to the Proposal for a Council Implementing Decision on the approval of the assessment of the recovery and resilience plan for Czechia {SWD(2021) 211 final}



ANNEX A. COMPONENT 1.1: Digital Services to Citizens and Businesses This component of the Czech plan shall support addressing the challenge of the incipient provision of digital public services, by increasing the number and user-friendliness of digital public services provided to citizens and businesses, and ensuring consistent, high-quality data management in the public administration. According to the results of the Digital Economy and Society Index (DESI 2020), Czechia presents a below average level of provision of digital public services to citizens and businesses. The aim of this component is to create client orientated portals (Citizens, Justice, Entrepreneur, Healthcare) and promote the facilitation of data sharing and management within the administration to align with the once-only principle. The implementation of the reforms under this component shall ensure the conditions for the sound management of databases and for controlled access to data. They shall also facilitate the provision of eHealth solutions, including the development of an eHealth portal, increased interconnectivity and interoperability of healthcare providers and central records, telemedicine and secondary use of health data. The investments aim at implementing 22 projects improving eGovernment services provided to end-users and five projects increasing access to open data in public administration. The component shall also increase the digitalisation of the justice system by equipping courts with audio-visual recording and data production facilities and by creating a Justice Portal providing easy access and digital services to concerned parties. The component supports addressing Country Specific Recommendation 3 2019, according to which Czechia shall focus investment-related economic policy on digital infrastructure, Country Specific Recommendation 1 2020, according to which Czechia shall strengthen the deployment of e-health services, and Country Specific Recommendation 3 2020, according to which Czechia shall support small and medium-sized enterprises by reducing the administrative burden and focus investment on the digital transition. It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01). A.1. Description of the reforms and investments for non-repayable financial support Reform 1: Conditions for quality data pool management and ensuring controlled data access The reform shall establish a comprehensive legislative, standardisation and organisational framework for high-quality governance and public administration data management. The reform shall lead to the creation of a data-sharing (”managed access”) tool to allow other parts of the public administration, as well as qualified third entities, access to non-public government data in line with the FAIR principles (Findability, Accessibility, Interoperability, and Reusability). The reform shall incorporate into Czech law the principles of good data management. The implementation of this measure shall be completed by 31 December 2025. Reform 2: eHealth services This reform shall increase the digitalisation of the health sector by implementing the following activities: ·definition of interoperability standards in accordance with the European Interoperability Framework for eHealth and definition of rules governing telemedicine; ·creation of a service catalogue, including the following new eHealth services: (i) Catalogue of standards; (ii) Catalogue of digital services; (iii) Reference register of health professionals; (iv) Patient reference register; (v) Identification/authentication services for patients and health care professionals; (vi) Patient Summary Services; (vii) eOrder services; ·extending the functionalities of the National Health Information Portal to include additional functionalities for the public, patients, health service providers and other authorised entities;

·connection of the most important health service providers to eHealth services according to interoperability rules and full operation of eHealth portal with increased functionality and service catalogue; ·strengthening the cybersecurity of the healthcare providers within the meaning of Act No 372/2011 in Prague and the cybersecurity of the government bodies under the Ministry of Health. The reform shall be completed by 31 December 2025. Investment 1: Digital services for end-users The investment shall implement interconnected projects in order to increase the number of eGovernment services available through Citizens’ and Entrepreneurs’ portals and the number of forms pre-filled based on the information stored in the information system in the public administration. The investment shall lead to easier and simpler access for citizens and business to digital public services via a single platform of federated portals and to the connection of information systems including systems supporting sanitary measures in relation to the COVID-19 pandemic. As a result, an increased number of digital services shall become available to end-users via a single login surface and the number of pre-filled forms and electronic submission to public administration shall increase. This investment shall be completed by 31 March 2026. Investment 2: Development of open data and a public data fund The investment shall include one programme with four interlinked projects aimed at fostering the publication of new open and public data sets. These projects shall consist of the publication of code lists used in public administration in public databases, the development of a national open data catalogue, the improvement of tools for accessing statistical information, and the creation of a modern meta-information system for the bodies of the State Statistical Service. This investment shall be implemented by 31 December 2024. Investment 3: Digital services for justice The investment has the objective to increase transparency of the national justice system by creating an eJustice portal that meets cybersecurity requirements and provides online services and access to information to end-users. This portal shall be interconnected with the Citizen’s Portal. Moreover, transparency and efficiency shall be further increased by digitalising the records of court hearings and by equipping court hearing rooms with audio-visual data recorders. This investment shall be implemented by 31 December 2023. A.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support Seq. Num. Related measure (Reform or Investment) Milestone / Target Name Qualitative indicators

(for milestones) Quantitative indicators

(for targets) Indicative timeline for completion Description and clear definition of each milestone and target Unit of measure Baseline Goal Quarter Year 1 Reform 1: Conditions for quality data pool management and ensuring controlled data access Milestone Finalisation of data audit at the levels of the central government, and adoption of the conceptual document “Strategy of controlled access to data to ensure conditions for quality management of the public administration data collection” by the Government, forming a basis for new data management legislation Conclusion of data audit of central government bodies (a total of 32 institutions), and adoption of the strategy conceptual document by the government. Q4 2023 The data audit and the consequent strategy shall serve as a basis for the preparation of legislative changes to incorporate good data management in public administration in line with the FAIR principles and in line with the envisaged European Data Governance Act 2 Reform 1: Conditions for quality data pool management and ensuring controlled data access Target Introduction of new data management methodologies in public administration Number of public administration authorities 0 32 Q4 2025 Standards for good data management in line with the FAIR principle to be developed for application in public administration, which shall be adopted and implemented by the authorities. 3 Reform 2: eHealth Milestone Definition of interoperability standards in accordance with the European Interoperability Framework for eHealth and definition of rules governing telemedicine Adoption of standards and rules by the Ministry of Health Q1 2022 The measure shall lay down the standards, rules and requirements governing interoperability by healthcare providers and shall serve as a basis for adaptation of the health systems. Rules governing telemedicine services shall be laid down to define the conditions of providing such services. 4 Reform 2: eHealth Target Number of new telemedicine services introduced and made available to patients Number 0 5 Q4 2025 New telemedicine services developed and made available to patients following the approval of project delivery by the Ministry of Health. 5 Reform 2: eHealth Target Completion of projects leading to the implementation of new digital health services. Number 1 8 Q4 2025 Completed projects shall include Smart quarantine 2.0; promotion of digital health services; eHealth portal solutions and secondary use of health data. These projects shall lead to the introduction of the following services:

(1) Catalogue of standards, (2) Catalogue of digital services (3) Reference register of health professionals (4) Patient reference register, (5) Identification/authentication services for patients and health care professionals, (6) Patient Summary Services, (7) eOrder services 6 Reform 2: eHealth Target Connection of health service providers / medical facilities to eHealth services according to interoperability rules and full operation of eHealth portal with increased functionality and service catalogue 0 15 Q4 2025 The measure should result in connecting healthcare providers in an interoperable system to e Health portal, which the providers shall be able to use for entry of information and communication with inter alia citizens, health service providers and health insurance companies. 7 Investment 1: Digital services for end users Milestone Full operation of the Single Digital Gateway Entry into operation of the Single Digital Gateway providing the services to citizens and businesses Q4 2022 A single platform for citizens and businesses enabling at least: submission of an initial application for admission to a public higher education institution; application for designation of applicable legislation in accordance with Title II of Regulation (EC) No 883/2004 on the coordination of social security systems; application for a pension and pre-retirement benefits from compulsory schemes; application for funding for higher education, for example in the form of a scholarship and loan from a public authority or institution. 8 Investment 1: Digital services for end users Milestone Connection of Sick Note system to Regional Hygiene Stations and the Smart Quarantine project developed to fight COVID-19 infection in the population and completion of development of 3 information systems Successful connection of existing systems and development of new systems Q4 2023 Connection of Sick Note, Regional Hygiene Station and Smart Quarantine completed aiming at reducing administrative complexity and improvement of systems developed during the COVID-19 pandemic and development and improvement of further 3 information systems: DIP – Information Obligations Database.:Global Distribution System in tourism; expansion of State Material Reserves Administration (SSHR). 9 Investment 1: Digital services for end users Milestone Full operation of 4 information systems Entry into operation of the four developed information systems providing services to end-users Q4 2024 The following projects shall be completed: Digital Registry development; Single Control Record Portal (JePEK); SIS_2 Tools for the Central Processing of Statistical Task; e-Tourism 10 Investment 1: Digital services for end users Target Completion of the listed projects leading to an increase of the number of filled forms sent by natural and legal persons to state authorities in a digital way (through portals or digital mailboxes) Number 26 839 874 53 679 748 Q1 2026 The measures shall lead to a 100% increase in the number of electronic filled forms submitted through portals and data mailboxes between 1 January 2025 and 31 December 2025 against the reference basis of 2019.This shall be achieved by the completion of the following underlying projects: implementation of legislative changes in Real Estate Cadastre Information System (ISKN); new digital services for small organisations; Digital service under the Integrated Information System of the Czech Social Security Administration (IIS ČSSZ); Investment screening system; nDIS establishment new tax information system; Entrepreneur’s portal; Public Administration Portal 2.0 (Citizen’s Portal); SIS1_Single Point of Collection – Uniform Interface for data provision; Technical and patent information system services; electronic submission to the department of the environment; development of submissions to Czech Social Security Administration and the link to digital services to the public administration; further development of the Czech Social Security Administration – Information and communication interface – Unified portal solution for work and social affairs and its connection of the digital service to public administration; development of the new web presentations for the Ministry of Agriculture. 11 Investment 2: Development of open data and public data Milestone Extension of National Open Data Catalogue with advanced functionalities Fully functional National Open Data Catalogue with advanced functionalities and services, including the completion of the listed projects. Q4 2022 The National catalogue of open data shall register and publish open and public data and information from the whole public administration in one place. It shall have advanced functionalities for searching, increase in catalogued data and services including the publication of code lists in a public data fund; new tools for accessing statistical data and meta-system for State Statistical Services. 12 Investment 2: Development of open data and public data Target Increase in the number of open data producers in the public administration publishing open data in the National Open Data Catalogue Number of new public entities 23 100 Q4 2024 The investments shall lead to an increase of 77 new entities publishing open data in the public administration. 13 Investment 3: Digital service for justice Milestone Deployment of a new technology platform of the Justice Portal, which shall make digital services available to citizens and shall be connected to the central Citizen’s Portal The update and full operation of the Justice Portal with extended functionalities Q4 2023 The measure shall create a new Justice portal connected to the Citizen’s portal. Functionalities and design shall be defined following needs assessment and user surveys. The redesign of justice.cz portal shall be implemented in 8 packages of thematically similar sites. Each package will consist of a user-oriented survey phase and design phase of the content. 14 Investment 3: Digital service for justice Target Equipment of courtrooms with audio-visual data recorders Number of courtrooms 370 1100 Q4 2023 The measure shall procure audio-visual equipment for courtrooms in order to enable digital recording of hearings and procedures for greater transparency. B. COMPONENT 1.2: Digital Public Administration Systems This component of the Czech recovery and resilience plan aims to address the challenge of stepping up the digital transformation in the Czech public administration and fostering collaboration and exchange between public institutions. It aims at ensuring the development of interconnected data pool of the public administration’s IT systems, supporting and enabling component 1.1, which supports the expansion of eGovernment services provided to end-users. The component shall develop core registers, including health registers, and connect public administration databases and relevant IT systems in order to reduce the complexity of procedures for companies and citizens and ensure secure data-sharing within the public administration. The implementation of the reforms under this component aims to ensure a standardised and coherent approach to the development of agenda information systems within the public administration. They shall provide expertise and consulting services via Competence Centres. They shall also develop and consolidate the fragmented health registries to prepare them for the provision of shared services and information exchange. Investments shall focus on developing and connecting core registries, on fostering the interconnection and update of age-related agenda information systems, on investing in equipment and infrastructure for eJustice services, and on improving the cybersecurity of the public administration.

The component supports addressing Country Specific Recommendation 2019 3, according to which Czechia shall focus investment-related economic policy on digital infrastructure, Country Specific Recommendation 2020 1, according to which Czechia shall strengthen the deployment of e-health services, and Country Specific Recommendation 2020 3, according to which Czechia shall support small and medium-sized enterprises by reducing the administrative burden and focus investment on the digital transition. It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01). B.1. Description of the reforms and investments for non-repayable financial support Reform 1: Centers of competence for supporting eGovernment, Cybersecurity and eHealth The reform shall establish eGovernment competence centres, which shall provide guidance, expertise, consulting services and common standards across the public administration, in order to ensure the coherent implementation of the measures for digitalisation and modernisation of information systems envisaged under both components 1.1 and 1.2. This shall be implemented through three competence centres (Cybersecurity-; eHealth-; eGovernment Competence Centres) anchored in the public administration, delivering support to public authorities in areas of analysis, system architecture, user experience and user interface design, cyber security or portal solutions, and project management. This reform shall be implemented by 31 December 2025. Reform 2: Developing systems supporting the digitalisation of health The reform shall accelerate and facilitate the creation of a coherent e-health infrastructure, including the stabilisation and standardisation of the healthcare data pool. The measure is divided into several interlinked projects implementing reference registers of Health Service Providers, Health Professionals and Patients, interconnected with eGovernment reference registers; health registers of the hygienic service and health registers of oncological, cardiovascular and other diseases; project to build information system for management support of Hygienic service in Czechia; extension of the existing functionality of ePrescription include prescriptions for narcotic drugs and psychotropic substances and the introduction of the electronic voucher service, building infrastructure supporting the system of care for patients with rare diseases. The measure also includes the provision of training programmes to expand the use of eHealth and digital services in the health sector, aimed primarily at healthcare staff. The reform shall be implemented by 31 December 2025 Investment 1: Developing and improving individual information systems The investment shall consist of projects aiming at updating, improving and connecting back-end age-related information systems, which shall enable the provision of new and enhanced services to citizens and businesses in the areas of employment policy, social security, medical assessment, statistics, passport and visa and services as foreseen under component 1.1. These projects shall lead to the improvement of ten information systems in total. The investment shall be implemented by 31 December 2025. Investment 2: Developing core registries and facilities for eGovernment The investment shall create and upgrade core registers in Czechia, notably the Register of Individuals, Population Register, Register of Rights and Obligations, Register of Territorial Identifications, Addresses and Real Estate, ORG Information System, and shall include the development of a Shared Service Information System that connects data from different information systems into an interconnected datapool. This shall be achieved through twenty interconnected projects. Beyond the registries, the new facilities shall include a new data centre and the development of an eGovernment cloud for computing services and development of technological infrastructure of public administration. This investment shall be implemented by 31 March 2026. Investment 3: Cybersecurity The investment shall aim at increasing the cybersecurity of the public administration and healthcare ICT infrastructure and information systems, under the Cybersecurity Act, in line with the National Cybersecurity Strategy. The measure shall include projects, which shall lead to i) the modernisation and expansion of police forces’ capacity in Czechia to detect, identify and respond to security and ICT incidents and to ii) the increased cybersecurity of at least ten information systems. The investment shall be implemented by 31 December 2025

Investment 4: Creating the conditions for digital justice The investment aims to modernise the working environment of the judicial system and enable the continuation of work in times of limited physical contacts, thereby increasing the resilience of the national justice system. The investment consists of three interconnected projects, which shall include i) the analysis of the use of data and mapping the needs of digitalisation in the justice sector, along with the deployment of a data warehouse and increased storage capacity, ii) the capacity increase of infrastructure enabling remote access and iii) increasing the number of equipped videoconferencing rooms for the judiciary. The investment shall be implemented by 31 December 2024. B.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support Seq. Num. Related Measure (Reform or Investment) Milestone / Target Name Qualitative indicators

(for milestones) Quantitative indicators

(for targets) Indicative timeline for completion Description of each milestone and target Unit of measure Baseline Goal Quarter Year 15 Investment 1: Development of information systems Milestone Successful establishment and operation of universal contact point enabling clients to communicate with the public administration in one place. Two key systems of the Czech public administration shall be operational, namely the CzechPOINT 2.0 system (in relation to citizens and officials) and the Central Authentication space of the public administration, the so called CAAIS (for officials) Q4 2022 The milestone shall implement the CzechPOINT 2.0 system providing the public with the range of assisted services, extracts from public administration information systems and the possibility to submit filled forms to or communicate with the state administration. The milestone shall also include the Information system for Central Authentication (called CAAIS). The milestone is considered fulfilled when both parts are implemented and available to end users. 16 Investment 1: Development of information systems Milestone Successful upgrade and operation of ePassport (ePasy) and EVC2 visa system Upgraded ePasy system is linked to core registries, EVC2 has implemented functionality of short and long-term visa in accordance with Entry/Exit System (EES) and both systems are available to end users Q4 2022 Linking ePasy to core registries and EVC2 visa system has implemented functionality of short and long-term visa in accordance with EES. 17 Investment 1: Development of information systems Milestone Successful operation of the Integrated Foreigners system reducing the administrative burden of foreigners and public servants New integrated system for foreigners is operational and providing services to end users Q4 2024 The measure milestone shall establish a new integrated system for foreigners system (ICAS), which shall enable foreigners registered in Czechia to manage heir residency related affairs via new digital services for public administration clients in the given section. 18 Investment 1: Development of information systems Target Contracting the execution of the listed information system projects forming the back-end basis of the information systems’ development for public administration Number 0 8 Q2 2024 The target is being achieved upon contracting the following projects: 1. Centralisation of system for self-employed persons 2. Electronic Exchange of Social Security Information 3. Grant Information System 4. Medical Assessment Service 5. Optimising data repository for social security administration 6. Branch system of e-filing services 7. Central Authentication Point for Czech Statistical Office and the integration of statistical registries into connected data pool 8. Museum Collections information system 19 Investment 1: Development of information systems Target Successful operation of new or upgraded information systems of public administration, which shall include the completion of the projects contracted under target 16 Number 0 8 Q4 2025 Under this measure the number of new or modernised information systems and projects implemented as part of this investment shall be counted in the target. All these systems the new or modernised information systems and projects implemented as part of the investment shall be operational and shall improve communication in public administration and improve the quality of services for public administration clients. The modernised information systems and completed projects shall include: 1. Centralisation of system for self-employed persons 2. Electronic Exchange of Social Security Information 3. Grant Information System 4. Medical Assessment Service 5. Optimising data repository for social security administration 6. Branch system of e-filing services 7. Central Authentication Point for Czech Statistical Office and the integration of statistical registries into connected data pool 8. Museum Collections information system 20 Investment 2: Development of core registers and facilities for eGovernment Milestone Completion of a fully operational software-defined data centre including data containers. Successful testing and adoption of the delivery of a new data centre by the Ministry of Labour and Social Affairs Q4 2022 The milestone shall be considered achieved once the new datacentre is fully operational and has been made available to end-users. 21 Investment 2: Development of core registers and facilities for eGovernment Milestone Completion of listed projects increasing the transmission capacity of the Central Point of Services and modernising and optimising communication and information infrastructure and information systems. The milestone is considered achieved when the Central Point of Services is upgraded, its capacity and security is increased and the projects to improve core registries communication and information systems have been concluded by the contracting/ implementing entities. Q4 2023 The measure shall constitute the development of basic registers and the development of the public administration’s technological infrastructure, including an increase in its transmission capacity and the implementation of new customer services and high transmission capacity-intensive services. The milestone shall be considered as fulfilled upon the completion of the following projects: 1. Capacity and security development of central point of Services 2. Modernisation and optimisation of the Multi-Protocol Label Switching (MPLS) Communication and Information Infrastructure 3. National Certification Authority to provide certifications to public administration entities 4. Increasing the capacity of data centres and data storage products 5. Hardware and software replacements for central registries 6. Upgrade and improvement of core registries including: Register of Individuals, Population Register, Register of Rights and Obligations, Register of Territorial Identifications, Addresses and Real Estate, ORG Information System 7. Related development and improvement of Integrated system of core registers and Shared Service Information System 8. Improvement of National Identity and Authentication Point 9. Development of a consolidated interface for core registries 22 Investment 2: Development of core registers and facilities for eGovernment Milestone Provision of cloud computing services to public authorities eGovernment cloud becomes available to end-users and capable of providing cloud computing services to public administration Q2 2026 The project shall establish a communication and ICT infrastructure and software applications for an extended Zeleneč Data Centre in Czechia and information systems of Cloud computing and Portal of eGovernment cloud to provide data services to the eGovernment cloud for enabling cloud computing services (IaaS, SaaS) to public administration authorities. The milestone shall be considered as achieved when cloud computing services can be performed. 23 Investment 3: Cyber security Milestone Modernisation of the Security Information and Event Management System of the police of Czechia and extension of its use for cybersecurity protection of further five other information systems, which shall be selected based on risk and feasibility study Entry into operation of the fully functional and upgraded Security Information and Event Management system and of additional five information services selected on the basis of a risk and feasibility study. Q4 2022 The investment shall increase the availability of Security Information and Event Management security monitoring infrastructure capable of logging and evaluating security incidents and extend the capacities and abilities of the police and the Ministry of Interior in Czechia to identify and respond to security incidents and incidents in ICT even remotely when access to office infrastructure is limited. 24 Investment 3: Cyber security Target Completion of projects leading to an increase of the number of information systems whose cyber security has been strengthened in line with Act No. 181/2014 Coll., on cyber security Number 0 10 Q4 2025 The measure shall increase the cybersecurity of the selected information systems in accordance with the requirements of Act No. 181/2014 Coll., on cyber security. The milestone shall be considered as achieved following the successful and documented testing and verification of compliance with cyber security requirements of the at least 10 selected information systems by the National Cyber and Information Security Office (NÚKIB) and the owner authorities of the respective systems have approved the delivery of the projects. 25 Reforms 1: Centers of competence for supporting eGovernment, Cybersecurity and eHealth Milestone Full operation of three competence centres providing consulting services to authorities implementing the changes in information systems and eGovernment ecosystem foreseen under in the reforms and investments of A component 1.1 and B component 1.2 of the recovery plan Competence centres shall be considered fully operational as soon as public authorities have submitted and competence centres have approved official requests for consulting services Q4 2022 Three competence centres in eGovernment, cybersecurity and eHealth shall provide consulting and advisory services to authorities in implementing projects under component 1.1 and 1.2 reforms and investments of A component 1.1 and B component 1.2 of the recovery plan 26 Reform 1: Centers of competence for supporting eGovernment, Cybersecurity and eHealth Target Consultations and assistance provided on topics related to the measures under component 1.1 and 1.2 reforms and investments of A component 1.1 and B component 1.2 of the recovery plan in the scope of at least 5 man-days, provided to specific public administration bodies Number consultations provided in scope of at least 5 man-days 0 50 Q4 2025 The measure shall provide expertise for the implementation of investments and reforms under component 1.1 and 1.2 to public administration bodies. Only consultations requiring a minimum five man-days shall be counted towards in the target. 27 Reform 2: Development of systems supporting eHealth Milestone Extension of Shared Drug Recording (ePrescreption) to narcotics and psychotropic substances and to electronic vouchers for medical devices Functionalities of ePrescription are extended with prescriptions for narcotics and psychotropic substances and with the prescription of medical device vouchers Q4 2023 The existing functionalities of the ePrescription shall be extended by this measure enabling the prescription of narcotics and psychotropic substances and vouchers for the purchase of medical devices. 28 Reform 2: Development of systems supporting eHealth Milestone Completion of projects consolidating and developing the electronic healthcare infrastructure in order to create interlinked databases and improve digital healthcare services The consolidated new services achieved by the projects are used by end users and registries are linked Q4 2025 The projects included in this measure shall consolidate the departmental system of health registries including the Information systems of regional Hygienic stations, the Hygienic registers, the National health information system, and the integrated educational platform. The relevant healthcare registries shall be linked to eGovernment services. The achievement of the milestone shall be verified by the successful testing performed and documented by the developer and by the contracting authority’s approval of project delivery following a successful pilot phase. Projects shall include: 1. Optimisation of the healthcare system for rare disease patients 2. Development of hygiene registers by improving existing registers of the sanitary services and information systems related to the management of pandemic situations 3. Development of an integrated information system to support the management of sanitation services in fourteen regions of the Czechia 4. Development of the infrastructure of branch eHealth reference registers of health service providers, health professionals and patients and support systems 5. Modernisation and capacity improvement of the National Health Information System 6. Training programme for health professionals for the use of eHealth systems 29 Investment 4: Creating the conditions for digital justice Milestone Analysis of data management and use of data in the justice sector and the deployment of a data warehouse The analysis is approved by the Ministry of Justice and the data warehouse is deployed Q2 2022 The milestone shall include an analysis mapping the data use and data management needs of the Justice sector and the Ministry of the Justice, which shall serve as a basis for the preparation of future projects aiming at the digitalisation of the sector and it shall also include the deployment of a data warehouse for the Ministry of Justice. 30 Investment 4: Creating the conditions for digital justice Target Increase in the number of conferencing rooms in the Justice system newly equipped and connected to enable video conferencing. Number of conference rooms 170 470 Q4 2022 The measure shall increase the number of conference rooms equipped with videoconferencing tools 31 Investment 4: Creating the conditions for digital justice Target Increase of the data storage capacity Petabyte 2 4 Q4 2024 The measure shall increase the data storage capacity of the Ministry of Justice strengthening the infrastructure for digital workplace and remote working. C. COMPONENT 1.3: High Capacity Digital Networks This component of the Czech recovery and resilience plan supports addressing the challenge of deploying very high capacity networks (VHCN) to maximise access to online services through internet connectivity for citizens, enterprises, public administrations and institutions, especially in rural areas. The component also aims at creating conditions supporting the development of 5G networks and services. The component contributes to addressing country specific recommendation, according to which Czechia shall focus investment-related economic policy on digital infrastructure (Country Specific Recommendation 3 2019), and the country specific recommendation, according to which Czechia shall focus investment on the digital transition, in particular on high-capacity digital infrastructure and technologies (Country Specific Recommendation 3 2020). It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the plan in accordance with the DNSH Technical Guidance (2021/C58/01). For all infrastructure investments, at least 70 % of construction and demolition waste shall be reused or recycled in accordance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01). C.1. Description of the reforms and investments for non-repayable financial support Reform 1: Improving the environment for the deployment of electronic communication networks This reform aims at improving the capacity to gather information on the active and passive infrastructure of electronic communication. The reform is aligned with the objectives of the Union sectoral legislation aiming at reducing the cost of network deployment, including Directive 2014/61/EU on measures to reduce the cost of deploying high-speed communication networks as well as to the aims of Directive 2018/1972 (the European Electronic Communications Code). The reform shall include, inter alia: ●The implementation of measures, including the entry into force of necessary legislative amendments and the completion of technical specifications, aimed at establishing databases of planned projects. ●The completion of digital technical maps (DTM) objects, allowing access to precise information on the location and technical infrastructure owned by public and private entities. The measure aims at digitising at least 161 000 hectares of basic spatial situation and 55 000 km of transportation and technical infrastructure networks. ●The completion of network quality measurements for all 76 districts of Czechia and the capital city, with the aim of providing better information on 5G and fixed network quality and reducing network coverage verification times. The measurements shall be in accordance with the quality-of-service parameters, definitions and measurement methods detailed in Annex X of Directive (EU) 2018/1972 and follow the BEREC Guidelines detailing Quality of Service Parameters. The availability of information on existing physical infrastructure and publicly funded civil engineering works shall make the sharing of physical infrastructure more efficient for the deployment of high-speed electronic communications networks. The measure shall be completed by 31 December 2025.

Reform 2: Supporting the development of the 5G ecosystem This measure aims at drawing up the strategic framework to promote infrastructure sharing for 5G networks, especially in less commercially attractive areas, allowing for a reduction in energy consumption, radio emissions, as well as the costs of network construction and operation. The measure shall support the completion of 25 studies, aimed at: ●Reviewing the national radio spectrum plan and evaluating the existing processes of the spectrum rights allocation and award strategy plans, with the objective of exploiting harmonised frequency bands for commercial use as early as possible, following the criteria established in the Common Union Toolbox for Connectivity . ●Analysing the feasibility of allowing operators to pay radio spectrum award fees in instalments in order to facilitate investments in 5G infrastructure. ●Identifying and formulating challenges arising from cybersecurity, the construction of electronic communications networks within municipalities and cities, and the development of towns and cities. Based on these studies, proposals shall be developed by the 5G Alliance on possibilities to further develop the 5G ecosystem. These proposals shall form the basis for guidelines on sharing passive and active electronic communication infrastructure to facilitate the deployment of 5G networks, in line with the Common Union Toolbox for Connectivity and taking into account Directive 2014/61/EU on measures to reduce the cost of deploying high-speed electronic communications networks, the RSPG21-016 FINAL report on spectrum sharing and Act No 143/2001 on the protection of competition. The measure also foresees the completion of a pilot project on 5G/26 GHz, aimed at developing guidelines and algorithms on radio spectrum coordination procedures of 5G and spectrum sharing with other services within the 26 GHz band. The reform shall be completed by 31 December 2025.



Investment 1: Building high-capacity connectivity This measure aims at supporting the construction of very high capacity connectivity networks (VHCN) with a particular focus on rural areas, where market-based solutions are not profitable and there exists little commercial incentive to deploy such networks. These areas of intervention shall be determined in accordance with the State aid rules in force and shall be subject to public consultation. At least one call for tenders for the construction of very high-capacity connectivity shall be launched for this measure, whose outcome shall be published by 31 December 2024. Through the implementation of the selected projects, the number of address points connected with the VHCN network as defined in the BEREC Guidelines on Very High Capacity Networks (connectivity of at least 1 Gb/s) shall increase by at least 23 000 units. The investment shall be completed by 31 March 2026. Investment 2: Covering 5G corridors and promoting the development of 5G This measure aims at enhancing the 5G coverage of transport corridors via investments in equipment, as well as on research and development. In pursuit of this objective, the following measures shall be completed: ●Increasing the coverage of rail corridors with an improved 5G signal. Based on a mapping of 4G coverage carried out by the Czech Telecommunications Office, intervention areas shall be proposed by 30 September 2021, ensuring that these would not be covered by telecoms operators in the market within 3 years. The following rail corridors shall be covered: Prague – Česká Třebová – Ostrava, Prague – Ústí nad Labem, Prague – Plzeň, Prague – České Budějovice, and Česká Třebová – Brno. ●Equipping at least 350 railway wagons with repeaters or passive walls for 5G signals. The contractors shall be selected following a call for tenders based on a study on the scope and feasibility of the project. ●Building and testing a Cooperative Intelligent Transport System for rail corridors (C-ITS) in 5G networks. Quarterly reports on the tests and experience gained shall be made available to other carriers operating in the above-mentioned rail corridors. This investment shall be completed by 31 December 2025. Investment 3: Supporting the development of 5G mobile infrastructure in rural investment-intensive white areas

This measure aims at enhancing the coverage of the 5G network in ‘white areas’, i.e. areas that have never been covered by any mobile signal higher than 3G and that can be assumed not to be covered by 5G base networks in the future due to the low expected profitability of the investment. This definition follows the State aid rules in force and the National plan for VHCN development. These areas shall be established based on an assessment of white basic settlement units to be carried out by the Czech Telecommunications Office and shall be subject to public consultation. To achieve this objective, calls for tenders for the construction and operationalisation of base transceiver stations (BTS) for 5G signals shall be launched. The intervention areas shall be proposed by the Ministry of Industry and Trade by 30 September 2021, ensuring that the proposed intervention areas shall not be covered by market-based telecoms operators within the following three years. The outcome of the calls for tenders shall be published by 31 December 2024. Through the implementation of the selected projects, the number of BTS shall be increased by 120. The investment shall be completed by 31 March 2026. Investment 4: Scientific research activities related to the development of 5G networks and services This measure is aimed at supporting public and private entities in research, development and innovation related to 5G networks and services. In pursuit of this objective, a call for tender for scientific research projects relating to the technological development of 5G networks and applications for the 5G ecosystem shall be launched. The projects shall focus on the use of 5G applications in industry and services, in particular the exploitation of new technologies in the production processes of the automotive and other key sectors, taking into account the principles of circular economy through the sourcing of secondary raw materials. Support shall also be targeted at projects fostering the development and dissemination of automation, robotisation, artificial intelligence and virtual or augmented reality. Potential beneficiaries include businesses or public research organisations. At least 20 projects shall be selected by 31 December 2024. During the subsequent implementation phase, at least 20 of the selected projects shall be completed. The investment shall be completed by 31 December 2025. C.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support Seq. Num. Related measure (Reform or Investment) Milestone / Target Name Qualitative indicators

(for milestones) Quantitative indicators

(for targets) Indicative timeline for completion Description and clear definition of each milestone and target Unit of measure Baseline Goal Quarter Year 32 Reform 1: Improving the environment for the deployment of electronic communications networks Milestone Entry into force of measures prepared by the Ministry of Industry and Trade aimed at establishing a database of investment project plans and increasing the number of network quality measurements Provision in the acts indicating the entry into force Q2 2023 Necessary legislative adaptations shall enter into force and technical specifications shall be completed, both aimed at establishing databases of investment project intentions in the meaning of Act No 194/2017 Coll., paragraph 11, 2 and increasing the number of quality measurements of electronic communications networks. The national regulator shall conduct tendering procedures and acquire the necessary equipment. Quality and usability of the provided information shall be in line with binding technical parameters. 33 Reform 1: Improving the environment for the deployment of electronic communications networks Target Completion of digital technical maps (DTM) objects for basic spatial situation Hectares 0 161 000 Q4 2025 Digital technical maps (DTM) objects shall be completed, allowing access to precise location information about the basic spatial situation objects owned by public and private bodies. 161 000 ha of basic spatial situation objects shall be digitised. The resulting DTM objects shall be publicly accessible. 34 Reform 1: Improving the environment for the deployment of electronic communications networks Target Completion of digital technical maps (DTM) objects for transportation and technical infrastructure networks Km 0 55 000 Q4 2025 Digital technical maps (DTM) objects shall be completed, allowing access to precise information about the location and technical specifications of physical infrastructure networks owned by public and private bodies. 55 000 km of transportation and technical infrastructure networks shall be digitised. The resulting DTM objects shall be publicly accessible. 35 Reform 1: Improving the environment for the deployment of electronic communications networks Target Completion of electronic communication quality measurements Number 0 77 Q4 2025 Measurement of the network quality shall be completed for all 76 districts of Czechia and the capital city. 36 Reform 2: Supporting the development of the 5G ecosystem Target Publication of studies aimed at improving the deployment of 5G networks by the Ministry of Industry and Trade Number 0 25 Q4 2024 The studies shall have the following objectives: ·Reviewing the national radio spectrum plan and evaluating the existing processes of spectrum rights granting and award strategy plans, with the objective of exploiting the harmonised bands for commercial use as early as possible. ·Analysing the feasibility of allowing operators to pay radio spectrum award fees in instalments to facilitate investments in 5G infrastructure. ·Identifying challenges arising from cybersecurity. ·Construction of electronic communications networks within municipalities and cities, and the development of towns and cities. In particular, the studies shall focus on the following issues: ·applicability of 5G features and standards in individual sectors and proposals for their technical implementation and regulatory measures. ·concept and usage of the digital twin of 5G network infrastructure. ·use of satellite communications for 5G coexistence and cooperation of terrestrial and satellite 5G networks. ·applicability of FeMBMS (Further evolved Multimedia Broadcast Multicast Service) in 5G networks for television broadcasting and audiovisual media services, including a strategy for the future use of the 600 MHz frequency band for television broadcasting. ·use of FRMCS (Future Railway Mobile Communication Systems) for railways with dedicated channels in the 900 MHz and 1900 MHz bands. ·use of quantum technology to increase the security of 5G networks and services. ·possibility of sharing spectrum usable for 5G networks. ·use of the 26 GHz frequency band for the 5G network. ·use of modern information systems, including sharing software through open sources or other forms of sharing, such as cloud servers, in 5G networks. ·use of a 5G network slicing system for public and private 5G networks. ·linking Internet of things (IoT) communications with 5G networks. ·use of 5G networks for Fixed Wireless Access ·impact of Open RAN (Radio Access Network) and Open Core access on the security of 5G networks. ·flying communication platforms (drones, UAVs, balloons) and their impact on the regulation of electronic communications. ·smart radio environments with application of online measurements of electromagnetic radiation and intelligent reflecting surfaces. ·development of 6G networks in the bands above 100 GHz. 37 Reform 2: Supporting the development of the 5G ecosystem Milestone Publication of guidelines on the deployment of 5G networks by the Ministry of Industry and Trade Publication of the guidelines by the Ministry of Industry and Trade Q4 2025 Guidelines shall be published on sharing passive and active infrastructure to facilitate deployment of 5G networks, corresponding to the Common Union Toolbox for Connectivity and taking into account Directive 2014/61/EU on measures to reduce the cost of deploying high-speed electronic communications networks, the RSPG21-016 FINAL report on spectrum sharing and Act No 143/2001 on the protection of competition. The guidelines shall be based on the studies published within the same measure. In particular, the measure foresees the development of guidelines and algorithms on radio spectrum coordination procedures of 5G, and spectrum sharing with other services within the 26 GHz band. 38 Investment 1: Building high-capacity connections Milestone Award of all grant decisions for connecting address points with the very high capacity network (VHCN) by the Ministry of Industry and Trade Notification of the award of all grant decisions for connecting address points with the very high capacity network (VHCN) by the Ministry of Industry and Trade Q4 2024 Notification of the award of all grant decisions for connecting address points with the very high capacity network (VHCN) by the Ministry of Industry and Trade. Calls for tender shall include a definition of eligible expenditure, evaluation models and criteria for the selection and evaluation of projects, rules for applicants and beneficiaries, and guidelines on wholesale offers. 39 Investment 1: Building high-capacity connections Target Completion of address points connected with the very high capacity network (VHCN) Number 0 23 000 Q1 2026 The infrastructure to increase the number of address points connected with the very high capacity network (VHCN) shall be constructed, increasing the number of address points connected by 23 000. The very high capacity network shall be in line with the BEREC Guidelines on Very High Capacity Networks. 40 Investment 2: Covering 5G corridors and promoting the development of 5G Target Completion of enhanced 5G signal coverage of selected rail corridors Km 0 210 Q4 2025 The measure shall enhance 5G coverage quality (beyond already imposed coverage criteria raised from spectrum auctions) over at distance of at least 210 km in the following rail corridors: Prague – Česká Třebová – Ostrava, Prague – Ústí nad Labem, Prague – Plzeň, Prague – České Budějovice, and Česká Třebová – Brno. 41 Investment 2: Covering 5G corridors and promoting the development of 5G Target Completion of equipping railway wagons with repeaters for passive walls mobile signal coverage Number 0 350 Q4 2025 Current wagons shall be equipped with operational 5G repeaters or passive walls for the quality provision of mobile data services. 42 Investment 2: Covering 5G corridors and promoting the development of 5G Milestone Installation and testing of the deployment of an intelligent transport system (C-ITS). Completion of the installation and testing of a C-ITS system Q4 2025 Support of 5G ecosystem applications in corridors shall entail building and testing of an intelligent transport system for rail corridors (C-ITS). A report on the results of this project shall be published by the Ministry of Industry and Trade together with the Ministry of Transport 43 Investment 3: Supporting the development of 5G mobile infrastructure in rural investment-intensive white areas Milestone Award of all grant decisions for connecting municipalities with high-capacity connection Notification of the award of all grant decisions for connecting municipalities with high-capacity connection by the Ministry of Industry and Trade Q4 2024 Notification of the award of all grant decisions for connecting municipalities with high-capacity connection by the Ministry of Industry and Trade. Calls for tender shall include a definition of eligible expenditure, evaluation models and criteria for the selection and evaluation of projects, rules for applicants and beneficiaries, and guidelines on wholesale offers. Inter alia, the selection criteria shall be in line with the BEREC Guidelines on Very High Capacity Networks. The municipalities shall be exclusively located in areas that have never been covered by any mobile signal higher than 3G and