Czech PM welcomes EU recovey fund compromise

Czech Prime Minister Andrej Babiš has welcomed the EU recovery fund compromise reached in Brussels, which downsized the grants part of the rescue package in favour of loans. Mr. Babiš said the outcome of the deal was favourable for the Czech Republic and particularly highlighted the fact that the country would be able to have a greater say in how the funds distributed will be used.

Under the agreement reached the Czech Republic should receive 35.7 billion euros (over 960 billion crowns) from the EU budget in the course of the next seven years. It will be able to borrow another 15.4 billion euros under favourable terms.

During the four-day marathon talks the Czech prime minister argued in favour of a fair distribution of funds, saying taxpayers in fiscally disciplined countries should not be put on the hook to repay loans that would benefit countries with little or no fiscal prudence, which had been deep in trouble even before the pandemic hit. On the other hand, the prime minister stressed that revitalizing the European economy is vital for Czech Republic’s own prosperity.