The Czech Republic wants to borrow tens of billions through the National Recovery Plan for projects such as the gas pipeline from Poland or the strengthening of the oil pipeline from Italy. The money will come from the European Recovery and Resilience Facility, which should make the loan profitable. Not all projects have been given the green light by the European Commission. Funding for the Dukovany hot water pipeline has been put on hold. Our Senior Research Fellow Vít Havelka commented on this topic.
Originally, the Czech Republic wanted to take only grants. It was not interested in loans because it was not certain whether the underfunded Czech state administration would be able to process the large inflow of money and use it effectively. Moreover, the Czech Republic was borrowing on relatively favourable terms on the financial markets at the time and there was no need to look for other sources of state funding.
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