The Czech Republic Could Lose Billions in EU Funds

The Czech Republic seems to have a problem that might cost several billions of Euros in the European Union funding. At the end of September, the Regional Development Committee of the European Parliament stated its “no” to the proposal to add the Czech Republic to the list of countries that have more time to make use of the European money of the ending Multiannual Financial Framework 2007–2013.

The issue deals with the so-called “n+2” and “n+3” rule, which defines the period of time in which Member States can use financial support from EU funds for a certain year. Between the years 2007 and 2010, the Czech Republic, as well as other new Member States, had the right to use the n+3 rule, while from 2010 to 2013, the rule changed to n+2, shortening the period by one year. This means that the end of 2013 is the deadline both for years 2010 and 2011. Currently, the Czech Republic finds itself in a situation in which it won’t be able to make full use of a large amount of European financial resources, meaning that they will be transferred back to the EU budget.

The extended period and postponing of deadlines for drawing money from EU funds would significantly help to manage the situation; however, it seems very improbable that the Czechs could join Slovaks and Romanians who negotiated the prolongation of the n+2 rule. As the Ministry of regional development of the Czech Republic mentioned, the battle is not lost. There is still a possibility to transfer the money to more successful programmes.