Restructuring of the Czech coal mining regions Dr Renata Eisenvortová MEMBER OF THE CONSULTATIVE COMMISSION ON INDUSTRIAL CHANGE, Group I, Employers Severní energetická a.s.

Coal mining regions in the Czech Republic The Moravian-Silesian Region The Ústí Region Ústí n/L The Karlovy Vary Region In the Czech Republic, there are 3 active mining regions: two with brown coal mining an one with hard coal mining

Situation in the Czech coal mining regions The coal extraction companies have remained some of the most important employers in these regions The reduction in coal production, or the phasing out, have heavy impacts on the relevant regions Closedown of coal mines: 31 April 2017, the Paskov hard coal deep mine in the Moravian-Silesian Region 1 April 2016, the Centrum brown coal deep mine in the Ústí Region

Restructuring of the Czech coal mining regions With a view to preventing the stagnation of the coal mining regions, and high unemployment rates, poverty, a deterioration in the standard of living, an increase in the number of socially excluded localities in the regions, etc. As early as 2015, the Czech government adopted a resolution to develop a strategy for economic restructuring in the Ústí, Moravian-Silesian and Karlovy Vary Regions.

Restructuring of the Czech coal mining regions The target of the strategy: Accelerate the economic restructuring process Improve the economic and social situation in the affected regions Following the initial analysis (a basic macroeconomic analysis and dialogues with the key players), the strategic framework was prepared and approved by the Czech government on 9 January 2017

Restructuring of the Czech coal mining regions The strategic framework is geared towards changing the economic structure, accelerating economic growth and stopping the lagging behind of the regions 7 pillars Business and innovation (Growing companies able to cope with changes on global markets) Direct foreign investment (More of direct foreign investments, mainly those with a higher added value) Research and development (Support growth of innovation performance through R & D generating greater benefits for the country’s economy) Human resources (Competent people for industry, services and public administration ) - Social stabilisation (Remove the barriers to development, which are related to social instability, improve the use of human potential for the transformation and development of the Regions ) The environment (Revitalise and regenerate the areas for better business and healthier life) - Infrastructure and public authorities (Provide the required infrastructure and improve public administration services in relation to meeting the objectives of the restructuring) + Implementation National and regional cooperation is necessary

Strategy of Economic Restructuring and Karlovy Vary Regions Restructuring of the Czech coal mining regions Strategy of Economic Restructuring and Karlovy Vary Regions ORGANISATIONAL STRUCTURE GOVERNMENT AGENT THE NATIONAL LEVEL THE REGIONAL LEVEL The Government of the Czech Republic Regional Authority, corporate cities, and other major towns and cities “Task Force” EXECUTIVE TEAM Strategy - organisationally reports to the Government Agent Regional tripartite panels Joint working teams for Pillars Regional Standing Conference Entrepreneurship and Innovation Major companies and key employers Foreign Direct Investment Other key stakeholders: universities, business associations, etc. Research and Development Human Resources Social stabilisation Infrastructure and the Environment Implementation and funding of the strategy at the national level Ministry of Regional Development + Ministry of Finance Entrepreneurship, investment and innovation Ministry of Industry and Trade Labour market and education Ministry of Labour and Social Affairs + Ministry of Education, Youth and Sports Infrastructure and the Environment Ministry of Transport + Ministry of the Environment 7

Restructuring of the Czech coal mining regions Current situation: preparation of the first Action Plans One for the Moravian-Silesian Region One for the Ústí and Karlovy Vary Regions The plans will be evaluated and updated every year (31 May) More on the restructuring of the relevant regions on the website at www.restartregionu.cz (only in the Czech language)

Restructuring of the Czech coal mining regions A Region is like an operating system. When it gets stuck, it needs Restart. This is the only approach to putting in place all important functions and services in a new and better way.

Restructuring of the Czech coal mining regions Recommendations: Since other coal mining regions in the EU face similar issues, some regions have restructured their coal industries, and these regions have made progress in different ways, it would be most advisable to meet and exchange experience, and share best practices on proven solutions, and, on the other hand, highlight past mistakes to avoid repetition, best of all, by way of organising round tables in selected regions with a view to preparing a set of recommendations for those coal mining regions that face restructuring, including on funding issues.

Dr Renata Eisenvortová Thank you! Dr Renata Eisenvortová r.eisenvortova@sev-en.cz 000420 602680519