Czech Post to get CZK 3.3 bn payment, subject to EC approval
The struggling Czech Post office will get a 3.3 billion crown payment from the state next year for so-called universal services from previous years, subject to approval of the European Commission.
Last year, Czech Post recorded a 1 billion crown loss. It may have to eliminate 7,000 positions as part of a restructuring in order to return to profitability by 2021.
The European Commission has twice approved billions in Czech state support, finding it compatible with EU internal market regulations and as such allowed.
Czech Post had a monopoly on the delivery of letters and other direct mail weighing less than 50 grams until the start of 2013. Now these services may also be offered by competitors, which focus mainly on corporate clients.