EU approves up to CZK 1.5 billion annual compensation for Česká pošta

The Czech government can compensate Česká pošta up to CZK 1.5 billion per year for net costs of basic postal services in 2023 and 2024, the European Commission has ruled. The Czech Telecommunication Office (ČTÚ), which verifies the costs, confirmed the decision. In recent years, costs have averaged CZK 1.8 billion, but the legal limit was CZK 1.5 billion. A government-approved amendment now proposes raising the cap to CZK 2 billion. Facing financial struggles, Česká pošta is restructuring, splitting into a state-run postal service and a commercial logistics division, Balíkovna.