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NCA: EU subsidies have not yet led to sustainable growth or higher competitiveness

by AI | 13.Oct 2025 | Europe in brief AI

There was no investment in new and progressive areas and fields that would allow us to transition to a modern innovative economy with high and sustainable growth rates.

Prague, view across the Vltava River to Prague Castle. Photo: ČTK Connect/Olga Patáková

Prague – European subsidies in the Czech Republic often go to tens of thousands of small projects that are unnecessary from the perspective of the national economy. They do not bring added value and do not have sufficient capacity to direct the Czech economy towards permanent and sustainable economic growth or to increase competitiveness. This was stated today by the Supreme Audit Office in a press release regarding its report on the management of EU funds, the so-called EU Report 2025. It summarized the results of audits for the period from April 1, 2024, to March 31, 2025, which focused on European subsidies.

The Supreme Audit Office cites as an example that the domestic gross domestic product in purchasing power parity compared to the EU average increased from 72 percent in 2004 to 91 percent in 2023, an increase of 19 points. In contrast, Poland’s GDP increased by 33 percentage points during the same period from 47 to 80 percent of the EU average. The office also states that the Northwest region, namely the Ústí and Karlovy Vary regions, is among the regions whose GDP per capita in purchasing power parity has not increased at all during the Czech Republic’s membership in the EU compared to the EU average.

“It also shows that the global crisis is affecting the Czech Republic more significantly than most other member states. This indicates a misguided long-term direction of support from the EU budget and generally the management of economic policy. There has been no investment in new and progressive areas and sectors that would allow us to shift towards a modern innovative economy with high and sustainable growth rates,” wrote the Supreme Audit Office.

“So far, we have not fully utilized the potential that European money brings. It will be up to the new political representation to negotiate rules and boundaries that will allow us to maximize the impact of every euro that reaches us,” said the president of the Supreme Audit Office Miloslav Kala. He also pointed out that there is already less money from the EU than before and that it will gradually decrease. “This makes it even more important to clearly define a very limited number of priorities and to use these resources effectively,” he added. (October 13)