RE:START

1. STRATEGY OF ECONOMIC RESTRUCTURING
OF USTI, MORAVIAN-SILESIAN AND KARLOVY VARY REGIONS
BASIC FACTS

2. Context of the Czech Republic Regional
development strategy:
Regional Development Strategy of the Czech Republic 2021+
Strong Metropolitan regions
Agglomerations
Structurally lagging-behind regions
Strategy of Restructuralisation of Ústecký,
Moravskoslezský and Karlovarský Regions
Regional centres and their hinterland
Economically and socially vulnerable regions
STRATEGY OF ECONOMIC RESTRUCTURING OF USTI, MORAVIAN-SILESIAN AND KARLOVY VARY REGIONS 2

3. Coal mining sites in the Czech Republic
and places of interest for the strategy:
Prague
Ústí nad Labem
České Budějovice
Brno
Ostrava
Ostrava-Karviná
Basin
Kladno
Hodonín
Sokolov Basin
Northern
Bohemian
Basin
Karlovy
Vary
Lignite
Hard coal
STRATEGY OF ECONOMIC RESTRUCTURING OF USTI, MORAVIAN-SILESIAN AND KARLOVY VARY REGIONS 3

4. Some consequences of mining activity:
dozens of villages have been razed,
the transport and technical infrastructure was liquidated,
mining in the area has disrupted or completely
destroyed fauna and flora,
significant interventions in surface
water and groundwater,
changing the landscape relief,
etc.
STRATEGY OF ECONOMIC RESTRUCTURING OF USTI, MORAVIAN-SILESIAN AND KARLOVY VARY REGIONS 4

5. Some related impacts on society
and economic structure:
high unemployment rate (long-term higher than the national average) and unfavorable internal structure
of the unemployed – high percentage of long-term unemployed people),
long-term lagging of the development of regional GDP in comparison with other regions of Czech
republic and trend of deepening of this lagging,
Insufficient structure of education of the people living in the regions (lack of people
with tertiary education, the education don´t meet the needs of the job market...),
lack of R&D activities in the regions and investments in this field at all,
great number of socially excluded localities (most of the socially excluded people in Czech republic
live in these regions),
etc.
STRATEGY OF ECONOMIC RESTRUCTURING OF USTI, MORAVIAN-SILESIAN AND KARLOVY VARY REGIONS 5

6. Why restructuring of the Usti, Moravian-Silesian
and Karlovy Vary Regions is necessary?
decline of the coal-mining industry and the heavy machinery industry,
long-term lasting and still deepening lagging of the economy of
these three regions (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 of perspective, educated
people to live in these regions and to raise families there,
a need to give a perspective for people, companies,
municipalities...for the future,
...the trust that – under conditions of focused, long-term work of key
stakeholders – every of these three regions have something really
interesting to offer.
STRATEGY OF ECONOMIC RESTRUCTURING OF USTI, MORAVIAN-SILESIAN AND KARLOVY VARY REGIONS 6

7. 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 higher 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 USTI, MORAVIAN-SILESIAN AND KARLOVY VARY REGIONS 7

8. General overview:
Government resolution – 2015
Initial analysis
• Basic macroeconomic analysis
• Dialogues with key actors
Strategic framework – 9. 1. 2017
1st
Action plan – 10.7. 2017
2nd
Action plan – 31.5. 2018
National level
Strategic
Framework
for Economic
Restructuring
Regions
Regional level
GOVERNMENT
COMMISSIONER
STRATEGY OF ECONOMIC RESTRUCTURING OF USTI, MORAVIAN-SILESIAN AND KARLOVY VARY REGIONS 8

9. Milestones for the implementation of the approved
Action Plan and its update process:
In 2014 the Czech government reactivated the position of the Government Commissioner, whose
role is to coordinate the cooperation with individual ministries in process of solving the needs of
restructuring the structurally affected regions (MSR, UR, KVR).
October 2015 - a government resolution imposed the elaboration of the Economic Restructuring
Strategy of the Moravian-Silesian, Usti and Karlovy Vary regions => a Strategic Framework
has been developed
January 2017 - a government resolution imposed the elaboration of the comprehensive Action plan
for the restructuring
July 2017 – the Action plan was approved by the Government of the Czech Republic
• the Action plan – a „handbook“ with detailed description of the activities / actions of restructuring –
these concrete activities / actions were widely consulted with the local stakeholders and authorities
on the national level.
STRATEGY OF ECONOMIC RESTRUCTURING OF USTI, MORAVIAN-SILESIAN AND KARLOVY VARY REGIONS 9

10. Organization structure
Regional tripartities
Regional Permanent
Conference
Major companies and
key employers
Other key stakeholders:
universities, business
associations, etc.
Joint working
teams for Pillars
“Task Force”
EXECUTIVE TEAM
Strategy -
organizationally
under the Government
Commissioner
NATIONAL LEVEL
REGIONAL LEVEL
GOVERNMENTCOMMISIONER
Entrepreneurship
andInnovation
ForeignDirect
Investment
Research
andDevelopment
Human
Resources
Social
stabilization
Infrastructure
andEnvironment
Implementation and
funding of the strategy
at national level
Ministry of Regional
Development
+ Ministry of finance
Entrepreneurship,
investment and
innovation
Ministry of industry
and trade
Labor market
and education
Ministry of Labour
and Social Affairs +
Ministry of Education,
Youth and Sports
Infrastructure
and Environment
Ministry of Transport
+ Ministry of
environment
The government
of the Czech Republic
Regional authority,
statutory cities and
other major cities
STRATEGY OF ECONOMIC RESTRUCTURING OF USTI, MORAVIAN-SILESIAN AND KARLOVY VARY REGIONS 10

11. Change of economic structure, faster economic
growth and cease of regions lagging
PILLAR
BUSINESS AND
INNOVATION
Growing business capable
to cope with changes
in global markets.
PILLAR
ENVIRONMENT
Better quality of environment. Revitalized and regenerated area for better business and healthier life of inhabitants.
PILLAR
INFRASTRUCTURE AND PUBLIC AUTHORITIES
Better quality infrastructure for business, attracting investments and addressing social exclusion.
Better quality services of public authorities for businesses and citizens.
PILLAR
IMPLEMENTATION
Multilevel cooperation of public authorities; use of existing programmes and funds, complemented in case of need with new ones;
Special management of implementation and responsibility for results.
PILLAR
DIRECT
INVESTMENTS
More direct investments
with higher added value.
PILLAR
RESEARCH AND
DEVELOPMENT
Research and development
with higher benefits
for economy..
PILLAR
HUMAN
RESOURCES
Competent people
for industry, services
and public authorities.
PILLAR
SOCIAL
STABILIZATION
Remove barriers
of development related
with social instability..
Identity – enforcing solidarity and self-confidence of inhabitants
Image – improved perception of regions by the neighbours: visits, investors, talents
STRATEGY OF ECONOMIC RESTRUCTURING OF USTI, MORAVIAN-SILESIAN AND KARLOVY VARY REGIONS 11

12. First Action plan adopted by
the Czech government in summer 2017:
it consists of 65 different actions / measures on the level of all the defined strategic pillars,
the implemented actions / measures focus primarily on:
• growing businesses and their innovation potential,
• strong support of R&D activities,
• development of university education, its quality and focus towards future challenges
(Society 4.0, Industry 4.0...),
• support of employment and fight with connected social problem like executions, housing problems etc.,
• deepening and intensification the activities on the level of restoration
(e.g. hydric reclamation, potential of pumped-storage hydroelectricity),
• development of road and highway infrastructure.
STRATEGY OF ECONOMIC RESTRUCTURING OF USTI, MORAVIAN-SILESIAN AND KARLOVY VARY REGIONS 12

13. Some examples of results of the implementation
of the first Action plan reached after 11 months:
measure B.2.1 - Programme for the regeneration and business utilization of brownfields
• special programme for the structurally affected regions - the first call for projects in this
programme managed by Ministry of industry and trade was opened in July and closed on
20th
October 2017; the total allocation of the programme by 2021 is 2 billion CZK
(for 2017 - 100 million CZK, 2018 - 300 million CZK, 2019 - 500 million CZK, 2020 - 600 million CZK,
2021 - 500 million CZK).
measure C.1.3 - Support for bilateral and multilateral cooperation in applied research
(TA CR EPSILON programme)
• an adjustment to EPSILON‘s next call has been prepared – there will be a special allocation
for the structurally affected regions within this programme with an estimated allocation of about
CZK 70 million / year.
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14. Some examples of results of the implementation
of the first Action plan reached after 11 months:
measure C.2.5 - Testing of autonomous vehicles in real (or near real) road traffic of the city
of Usti nad Labem - U „SMART“ ZONE
• first step for the future testing is the processing of a feasibility study – based on the tender a processor
of the study has been chosen; in the autumn of 2018 we expect the follow-up steps as the investments
in the smart-infrastructure of the city so the testing of autonomous vehicles can be real.
measure D.1.3 - Targeted complementary calls for projects within the Operational Programme
Research, Development and Education for universities in structurally affected regions
• complementary calls for projects has been prepared from ERDF and ESF with estimated allocation
of ERDF about 1.6 billion CZK and ESF 600 million CZK.
• the calls for projects were opened on 14th
February 2018.
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15. Some examples of results of the implementation
of the first Action plan reached after 11 months:
measure F.1.5 – Acceleration of a national programme for solving the environmental damages
on the level of structurally affected regions
• increase of the total allocation of the programme for Usti and Karlovy Vary Regions and also for the
Moravian-Silesian regions (two different types of programmes)
• the allocation of the programme for Usti and Karlovy Vary Regions has been already increased by
3 billion CZK (the money will be used e.g. for the reclamation of closed coal mine area near Sokolov,
where has already the car manufacturer BMW announced an important investment in building a new
test-field for autonomous vehicles).
measure F.1.8 - Analysis of the potential and real pumped-storage hydroelectric plants
in structurally affected regions
possibilities of utilization of in cooperation with the Ministry of industry and trade a process
of elaborating this analysis has been initiated.
• great potential for the future of current surface and underground mines.
STRATEGY OF ECONOMIC RESTRUCTURING OF USTI, MORAVIAN-SILESIAN AND KARLOVY VARY REGIONS 15

16. Updating the Action plan:
each year, the Action plan will be evaluated and updated,
as a part of the process of updating there is a possibility to suggest new measures / projects, which
should be implemented,
there is a variety of ways how to suggest new measure / project:
(a) through an electronic questionnaire designed for the professional public - both at regional
and national level, including the responsible ministries,
(b) through media appeals to the general public,
(c) on the basis of personal negotiations with regional actors within working groups and platforms.
actually a first update of the Action plan is under progress and fully coordinated by the Office of the
Government Commisioner – it will be forwarded to the Czech government till the end of May 2018 and
the Czech government should discuss it in following weeks,
the updated Action plan brings 25 new different actions / measures on the level of all the defined
strategic pillars.
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17. Contacts:
Responsible for the Strategy
on the level of MSR:
Jiří Cienciala
Government Commissioner
for MSR, UR and KVR
zmocnenec.vlady@gmail.com
Secretariat of the Office of the Government Commissioner for MSR, ÚR and KVR
tel.: +420 476 206 859
e-mail: sekretariat@restartregionu.cz
Responsible for the Strategy
on the level of UR and KVR:
Gabriela Nekolová
Deputy Government Commissioner
for UR and KVR
nekolova@hsr-uk.cz
www.restartregionu.cz
STRATEGY OF ECONOMIC RESTRUCTURING OF USTI, MORAVIAN-SILESIAN AND KARLOVY VARY REGIONS 17