Strategy of Economic Restructuring of
Usti, Moravian-Silesian and Karlovy
Vary Regions
-
basic facts
Updated: March 2023

Strategy of Economic Restructuring of Moravian-
Silesian, Usti 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+.

Strategy of Economic Restructuring of Moravian-
Silesian, Usti 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 – Usti 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

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,
• changes in structure of society
• etc.
Strategy of Economic Restructuring of Moravian-
Silesian, Usti and Karlovy Vary Regions
CHALENGES THE REGIONS
HAVE TO FACE TO!

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,
• highest unemployment rate between Czech regions (long-term, higher
than the national average)
• high percentage of long-term unemployment among unemployed people,
• high 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 Moravian-
Silesian, Usti and Karlovy Vary Regions

• Brain drain, depopulation and aging of population
• unfavourable 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 Republic 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 Moravian-
Silesian, Usti and Karlovy Vary Regions

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 Moravian-
Silesian, Usti and Karlovy Vary Regions

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 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,
• ...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 Moravian-
Silesian, Usti and Karlovy Vary Regions

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

Development of
ENTREPRENEURSHIP
Improvement of
ENVIRONMENT
Higher quality of
EDUCATION
Prevent the EXIT of
PEOPLE from the
regions
Current objectives of the strategy:
Strategy of Economic Restructuring of Moravian-
Silesian, Usti and Karlovy Vary Regions
Support for
DEVELOPMENT of
PROJECTS
(consulting)
Better IMAGE of
REGIONS

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 Moravian-
Silesian, Usti and Karlovy Vary Regions

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 their 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 Moravian-
Silesian, Usti and Karlovy Vary Regions

• 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 (basic macroeconomic analysis)
• dialogues with key stakeholders
-> CHALLENGES AND NEEDS
• 2017 - The RE:START Strategic Framework (updated in 2020) – type measures that recflect needs
and challenges.
• 2018 – Action plans (AP), 2019, 2020, from 2021 – two year period of AP (AP1…AP5)
• Action plan – contains measures that are going to be implemented.
• AP1 to AP5 (2017-2023) 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 Moravian-
Silesian, Usti and Karlovy Vary Regions
RE:START strategy - general overview:

Action plan
• the ACTION PLAN – a „handbook“ with detailed description of the
activities / actions of restructuring – these concrete measures were
widely consulted with the local stakeholders and authorities on the
national level.
• 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).
• 5 ACTION PLANS (two-year period of updating from 2022)
Strategy of Economic Restructuring of Moravian-
Silesian, Usti and Karlovy Vary Regions

Updating the Action plan:
• Every second year, the Action Plan is 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 in ISPZ system designed for
the professional and general public - both at regional and national
level,
(b) through media appeals to the general public,
(c) on the basis of personal negotiations with regional actors within
working groups and platforms.
• Measures are regurally monitored every year.
Strategy of Economic Restructuring of Moravian-
Silesian, Usti and Karlovy Vary Regions

NATIONAL LEVEL
REGIONAL LEVEL
Ministry of
Regional
Development
(MoRD)
Regional authority,
statutory cities and
other majorcities
“Task Force”
EXECUTIVETEAM
Strategy - enforced
and implemented
by the Restart Unit
(MoRD)
Regional
tripartities
Joint working
teams for Pillars
Regional
Permanent
Conference
Entrepreneurship
and
Innovation
Major
companies
and key
employers
Foreign
Direct
Investment
Other key
stakeholders:
universities,
business
associations, NGOetc.
Research
and
Development
Human
Resources
Social
stabilization
Infrastructure
and
Environment
Implementation and
funding of the strategy at
national level
Ministry ofRegional
Development
+ European Union
Entrepreneurship,
investment and
innovation
Ministry of industry
and trade
Labor market and
education
Ministry ofLabour
and SocialAffairs
+ Ministry of
Education, Youth
and Sports
Infrastructureand
Environment
Ministry ofTransport
+ Ministry of
environment
ORGANIZATION STRUCTURE
Strategy of Economic Restructuring of Moravian-
Silesian, Usti and Karlovy Vary Regions
MANAGEMENT
OF
STRATEGY

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

5 Action Plans
105 measures
CZK 144 bn.
ABSORBED (spent) CZK
10,3 bn.
(38 measures completed)
Strategy of economic restructuring of UR, MSR, KVR
RE:START 2017 - 2030
Based on negotiation the support 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 titles.
37%
42%
16%
5%
105 measures
Hotovo
V realizaci
Nutno iniciovat
Nedaří se
Strategy of Economic Restructuring of Moravian-
Silesian, Usti and Karlovy Vary Regions

State of implementation of the examples of measures
within each pillar of the RE:START strategy:
State of
implementation Pillar A: Enrepreneurship and innovation
revitalization of properties for the use of business
support of consulting and services for entrepreneurship
support of digitisation and robotization
particular support for new firms
development of spa infrastructure and support for spa industry
State of
implementation Pillar B: Direct Investments
programme for regeneration of brownfields for business use
complex project of mining of lithium in Ústí and Karlovy Vary region.
financial instrument JESSICA II
greenfield and improvements of quality and using of the current industry zones
initiation of particular programme for specific types of brownfields in build-up areas of settlements.
Strategy of Economic Restructuring of Moravian-
Silesian, Usti and Karlovy Vary Regions

State of
implementation Pillar C: Research and development
Preferential treatment for "coal regions" in relevant research programmes of TAČR
Provision of analysis for development of autonomous mobility
Support of R&D in "coal regions"
Activities in popularization of science and new technologies
Measures on attracting the qualified workers in science and other experienced specialist to come to the region
Specific support R&D in "coal regions"
use of geothermal energy
Research programmes of TAČR
State of
implementation Pillar D: Human resources
Support of universities
Support of secondary schools (preferential treatment, English, career consultancy etc.)
Measures on higher employment
Lifelong learning
Upgrade of primary and secondary schools
transition social business
Development of regional activities done by Labour Offices
Harmonisation of job and family life
Revision of investment incentives and improvements of their efficiency
Strategy of Economic Restructuring of Moravian-
Silesian, Usti and Karlovy Vary Regions

State of
implementation Pillar E: Social stabilisation
Analysis on "silver economy"
Measures on solving indebtedness (activity of LO)
Support of investment into health sector
Regional analysis of needs for integration of foreign workers
Community life and social service
Development of rural areas in "cola regions"
Measures aiming at medical and non-medical personnel
Investments in preservation of historical heritage
Investments in health sector/infrastructure in KVR
State of
implementation Pillar F: Environment
Brownfields for non-business use
Demolition in SEL, acceleration of spending allocation of programme for solving ecological burdens
Revitalisation of Krušné hory (mountain area of "coal regions")
Preparation of studies on use of specific brownfields
Improvements in local accesibility of wide range of services for residents
Fund for supporting of preparation of SP
Centres for public energy experts
Development of RES and energy communities
Improvements in air quality
Safe regions
Safer operation of Spolchemie
Use of potential for pum-storage plants in "coal regions"
Strategy of Economic Restructuring of Moravian-
Silesian, Usti and Karlovy Vary Regions

State of
implementation Pillar G: Infrastructure and public governance
Connecting of Podrušnohorská výsypka
Priority traffic infrastructure
Modernisation of railway lines
Strategic transport connections
Studies for analysis on renewal of Slavkov railway line
Systém approach - lorry transport
Digitisation of public administration
Analysis of potential for adjustments in tax systém
Development of Karlovy Vary airport
Strategy of Economic Restructuring of Moravian-
Silesian, Usti and Karlovy Vary Regions

Contacts
Simona Šťastná
Head of RE:START department
Simona.Stastna@mmr.cz
Tomáš Burdych
Consultant for the issues of Czech Coal
Regions
Tomas.Burdych@mmr.cz
Strategy of Economic Restructuring of Moravian-
Silesian, Usti and Karlovy Vary Regions
www.restartregionu.cz;
www.dotaceeu.cz/uhelneregiony

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