Implementing decision 2022/2084 - Amendment of Implementing Decision (EU) 2020/1345 granting temporary support to the Czech Republic to mitigate unemployment risks following the COVID-19 outbreak - Main contents

EN

Official Journal of the European Union

L 280/41

Further to a request from Czechia on 7 August 2020, the Council, by means of Implementing Decision (EU) 2020/1345 (2), granted financial assistance to Czechia in the form of a loan amounting to a maximum of EUR 2 000 000 000 with a maximum average maturity of 15 years, and with an availability period of 18 months, with a view to complementing Czechia’s national efforts to address the impact of the COVID-19 outbreak and respond to the socioeconomic consequences of that outbreak for workers and the self-employed.

The loan was to be used by Czechia to finance short-time work schemes and similar measures, as referred to in Article 3 of Implementing Decision (EU) 2020/1345.

The COVID-19 outbreak has immobilised a substantial part of the labour force in Czechia. This has led to repeated sudden and severe increase in public expenditure in Czechia in respect of the measures referred to in Article 3, points (a), (c), (d) and (e), of Implementing Decision (EU) 2020/1345.

The COVID-19 outbreak and the extraordinary measures implemented by Czechia in 2020, 2021 and 2022 to contain that outbreak and its socioeconomic and health-related impact had and are still having a dramatic impact on public finances. In 2020, Czechia had a general government deficit and debt of 5,8 % and 37,7 % of gross domestic product (GDP) respectively, which expanded to 5,9 % and 41,9 % respectively at the end of 2021. According to the Commission’s 2022 spring forecast, Czechia is expected to have a general government deficit and debt of 4,3 % and 42,8 % of GDP respectively by the end of 2022. According to the Commission’s 2022 summer interim forecast, Czechia’s GDP is projected to increase by 2,3 % in 2022.

On 22 September 2022 Czechia requested further financial assistance from the Union in the amount of EUR 2 500 000 000 with a view to continuing to complement its national efforts undertaken in 2020, 2021 and 2022 to address the impact of the COVID-19 outbreak and respond to the socioeconomic consequences of the outbreak for workers and the self-employed. In particular, Czechia further extended and amended the short-time work schemes and similar measures set out in recitals (6) to (9).

The short-time work scheme known as ‘Antivirus’ Programme, as referred to in Article 3, point (a), of Implementing Decision (EU) 2020/1345, was designed to compensate wage costs of private employers forced to suspend or significantly scale down their economic activity as a direct consequence of measures taken by the authorities (Option ‘A’), or indirectly as a result of adverse economic effects of the COVID-19 pandemic (Option ‘B’). It had as its legal basis the Government Resolution No 353 of 31 March 2020, as amended, and Article 120 of Act No 435/2004 Coll. (3), on employment, as amended. The Programme was extended and amended with Option ‘A plus’ through Government Resolution No 1039 of 14 October 2020 in order to provide full compensation of wage costs to employers forced to suspend or scale down their...