Strategy of Economic Restructuring of Usti, Moravian-Silesian and Karlovy Vary Regions

Strategy of Economic Restructuring of Usti, Moravian-Silesian and Karlovy Vary Regions

1. Strategy of Economic Restructuring of Ú st í , Moravian-Silesian and Karlovy Vary Regions - basic facts Updated : March 2025

2. Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions Spatial context of regional development and its structure : The RE:START Strategy can be seen as a specific part of The Regional Development Strategy 2021+.

3. Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions Coal mining sites in the Czech Republic and places of interest for the RE:START strategy: KVR – Karlovy Vary region UR – Ústí region MSR – Moravian-Silesian reg . The different size of Czech coal regions – mostly NUTS III X NUTS II ( only MSR) Lignite surface mining X Hard coal underground  mining

4. Some consequences of mining activity: dozens of villages have been razed , the transport and technical infrastructure was liquidated , mining in the area h as disrupted or completely destroyed fauna and flora, significant interventions in surface water and groundwater, changing the landscape relief, changes in structure of society etc. Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions CHALENGES THE REGIONS HAVE TO FACE TO!

5. Some economic, social and socio-economic challenges and related impacts : long-term lagging of the development of regional GDP in comparison with other regions and trend of deepening of this lagging behind (especially in Northwest = KVR, UR) , lack of R&D activities in the regions and investments in this field at all, high est unemployment rate between Czech regions (long-term , higher than the national average) high percentage of long-term unemployment among unemployed people , h igh importance of sectors affected by coal phase-out and transition to climate neutral economy ( coal mining, energy sector, metalurgy, chemical industry and glass and ceramic industry and others ) relatively high economic specialisation and relevance of large companies. Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions

6. Brain drain, depopulation and aging of population u nfavourable educational structure of the population (lack of people with tertiary education, labour market mismatch, shortage of qualified people in the labour market, ...), rising social inequalities high level of seizure and household indebtedness and great number of socially excluded localities (most of the socially excluded people in Czech R epublic live in these regions), low regional image and low attractiveness of regions low level of quality of life regional identity – historical context (German displacement , UR, KVR) spatial concentration of many problems on local level etc. Strategy of Economic Restructuring of Ú sti , Moravian-Silesian and Karlovy Vary Regions

7. Environmental challenges : large post- mining areas for land reclamation and revitalisation ( especially in the Northewest ), old environmental burdens and air polution problems ( significantly improving ). sources of photos : 1) aktualne.cz and 2) iDNES.cz Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions

8. Why restructuring of the Ú st í , Moravian-Silesian and Karlovy Vary Regions is necessary ? decline of the coal-mining industry and the heavy machinery industry, the economy of these three regions in lagging behing for long period and is still deepening (represented e.g. by its GDP, unemployment rate, average wage...) – the three regions have been identified as structurally affected (lagging-behind) regions , social instability which affects the will and perspective of educated people to live in these regions and to raise their families there, a need to give a perspective for people, companies, municipalities...for the future, Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions

9. RE:START STRATEGY (2017-2030) Long-term strategy aiming at restructuring the Czech coal regions

10. Current goals of the RE:START Strategy Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions

11. Goals of the restructuring strategy : growing business capable to cope with changes in global markets, more direct investments with higher added value , R&D activities with real benefits for the economy, well educated people competent to cope with the challenges of the needs of industry, services and public authorities in the world of society / industry 4.0 , remove barriers of development related with social instability, better quality of environment - revitalized and regenerated area for better business and healthier life of inhabitants, better quality infrastructure for business, attracting investments and addressing social exclusion, better quality services of public authorities for businesses and citizens. Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions

12. reduce the number of PEOPLE LEAVING from the regions We also try to… Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions support the DEVELOPMENT of PROJECTS ( consulting ) improve the IMAGE of REGIONS

13. Development of RE:START Strategy : First stage (2015 - 2018) Emphasis on creating a system at central level with respect to the needs of regions. Second stage (2019 - ongoing ) Emphasis on effective absorption and implementation in regions. 2019 – focus on the role of regions and its stakeholders strengthening the executive teams of regions and the ir involvement in the preparation and implementation of the RE:START Action Plans . Management of RE:START Strategy , supervision over its implementation and coordination with relevant actors were handed over to the Ministry of Regional Development ( MoRD ) . Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions

14. 2014 – coal regions asked for government support to help strengthen their economies in the face of declining coal production. 2015 – Government resolution : -> Initial analysis (2015-2016): regional analysis of the situation in coal regions ( b asic macroeconomic analysis ) dialogues with key stakeholders -> CHALLENGES AND NEEDS 2017 - The RE:START Strategic Framework ( updated in 2020 and 2023) – type measures that reflect needs and challenges of three coal regions . 2018 – Action plans (AP), 2019, 2020, from 2021 – two year period of AP (AP1…AP6) Action plan – contains measures that are going to be implemented . AP1 to AP6 (2017-2024) are currently being implemented . 2019 – change of implementation rules , the strategy is managed by MoRD 2020 – 2022 – Territorial Just Transition Plan (TJTP) was being prepared on the basis of experience with Restart strategy and existing network of stakeholders and regional partners . Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions RE:START strategy - general overview :

15. Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions

16. Action plan the A CTION PLAN – a „handbook“ with detailed description of the activities / actions of restructuring that are going to be implemented – these concrete measures were widely consulted with the local stakeholders and authorities on the national level which are responsible for their implementation . Each activity / action is matched with one of 7 pillars of RE:START Strategy (in some cases the implementation of measure can bring a positive impact on more pillars of the strategy ). 6 ACTION PLANS ( two-year period of updating from 2022), the last Action plan was approved on December 11, 2024. Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions

17. Updating the Action plan : Action Plan is updated every second year as a part of the process of updating there is a possibility to suggest new measures / projects, which should be implemented or adjustments of current measures . there is a variety of ways how to suggest new measure / project: (a) through an electronic questionnaire designed for the professional and general public - both at regional and national level, (b) through our media appeals to the general public, (c) on the basis of personal negotiations with regional actors within working groups and platforms mainly the Regional Permanent Conference . Measures are regularly monitored every year in the Implementation Report. Strategy of Economic Restructuring of Usti , Moravian-Silesian and Karlovy Vary Regions

18. Preparation of new action plan and updating of existing measures REGIONAL PERMANENT CONFERENCE (RPC) – platform for discussions in regions ( each region has its own RPC) External experts RE:START EXECUTIVE TEAM ( MoRD ) Dedicated working groups in each region Regional stakeholders – regional government , umbrella institutions for municipalities , economic , social and other partners Other relevant ministries ISPZ – dedicated system of MoRD for collection of projects ideas Electronic questionnaire Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions

19. ORGANIZATION STRUCTURE Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions MANAGEMENT OF STRATEGY NATIONAL LEVEL Ministry of Regional Development ( MoRD ) Regional authority, statutory cities and other majo r cities “Task Force” EXECUTIVE TEAM Strategy - enforced and implemented by the Restart Unit ( MoRD ) Regional tripartities Joint working teams for Pillars (WG - working groups ) Regional Permanent Conference (RPC) E n t r ep r eneurship and I nn ova tion Major companies and key employers F o r ei g n Di r e c t I n v estme n t Other key stakeholders: universities, business associations, NGO etc. R esea r ch and D e v elopme n t Human R esou r c es S ocial stabiliz a tion I nf r astru c tu r e and E n vi r onme n t F unding of implementation of the strategy at national level , MoRD , MoE * + European Union En t r ep r eneurshi p , investment and innovation Ministry of industry and trade + MoE * Labor market and education Ministry of Labour and Social Affairs + Ministry of Education, Youth and Sports + MoE * Infrastructure and Environment Ministry of Transport + Ministry of Environment ( MoE )* * Thanks to the funds from Just Transition Fund MoE as the Managing Authority becomes key partner of MoRD for implementation of strategy . - RPCs with their WG are key bodies were discussion are done. REGIONAL LEVEL

20. Approval process of AP DRAFT of new Action plan COLECTION, SORTING AND ANALYSING of suggested and current MEASURES APPROVAL AT THE REGIONAL LEVEL (in each coal region) COMMENTING PROCESS AT THE REGIONAL LEVEL RE:START team in cooperation with RSC in each region Discussion with RSC and relevant ministeries and future implementing institutions for particular measures CONFERENCE OF RE:START STRATEGY INTERMINISTERIAL COMMENTING PROCEDURE GOVERNMENTAL APPROVAL IN ITS RESOLUTION Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions

21. 6 A ction P lans 104 measures ABSORBED ( spent ) CZK 11,4 bn . (58 measures completed ) Strategy of economic restructuring of UR, MSR, KVR RE:START 2017 - 2030 Based on negotiation the s upport for coal regions has form of specific calls of operational programmes (OP) , specific financial allocations within general OP, point advantages in evaluation of projects for support , initiation of national subsidy programmes and legislative changes . Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions 4,8 % 55,8 % 39,4 %

22. Contacts Kristýna Weissová Head of RE:START department kristyna.weissova@mmr . gov . cz Tomáš Burdych Consultant for the issues of Czech Coal Regions Tomas.Burdych@mmr . gov . cz Strategy of Economic Restructuring of Ú st í, Moravian-Silesian and Karlovy Vary Regions www.restartregionu.cz ; www.dotaceeu.cz/uhelneregiony

23. We are looking forward to cooperating with you ! RESTART III Reg . Nr . CZ.10.04.01/00/22_004/0000001