The EU Point Index aggregates data from the whole market into a single index that can be easily interpreted. For experts, it shows the general trend of developments in the key areas of the subsidy market in comparison with the long-term average. The EU Point Index takes into account the activity of both grant applicants and the granting agencies.

EU Point Index in March 2009: Growth to 139 points

The subsidy market players' activity significantly increased in March. The EU Point Index of 139 points was mainly due to the high rise in the number of applications submitted under the Integrated Operational Programme. The reason is that there was the deadline for accepting applications in the area of 2.1 ICT Implementation in Regional Public Administration. In March alone, 3,423 municipalities applied for a grant to build a contact point for public administration, the so-called Czech Point.

The allocation of open calls has also increased significantly:

  • Acceptance of applications in response to the very first call for proposals under Operational Programme Research and Development for Innovation was started; regional R & D centres are eligible for the subsidies, and CZK 6 billion is to be allocated on the whole;
  • Under Operational Programme Human Resources and Employment, a scheme for employee training, Training Is a Chance, was launched with an allocation of CZK 1.8 billion;
  • Multiple calls were also opened in Regional Operational Programmes - the highest growth has been registered in ROP Southwest; in the fifth and sixth call, a total of CZK 4.3 billion is available to the applicants.

Outlook

We expect the increased subsidy activity to continue in the coming period: Development and Innovation-Project schemes have been announced under Operational Programme Enterprise and Innovation, and Innovation-Patent and Co-operation are to be announced soon.

Applications for renewable energy sources under the Environment Operational Programme will be accepted in May. We also expect a greater impact of the Guarantee scheme under Operational Programme Enterprise and Innovation, where calls were opened in February.

KB EU Point Index – calculation method

The resulting value of the EU Point Index is adjusted with a view to the long-term average equalling 100. The current value represents the increase (or decrease) in the subsidy activity in comparison with the long-term average.

Eight inputs are reflected in the value of the index:

  • Number and volume of open calls (a weighting of 30%) – all calls that were opened in the respective month are factored in, including the calls that are applicable for the whole programming period. The number and amounts of allocations represent the activity of the granting agencies, or "what they have done for the successful distribution of EU funds";
  • Number and volume of applications submitted (a weighting of 25%) – applications represent applicants' activity. These values depend on the current funding opportunities. A large number of applications also reflects the attractiveness of subsidy programmes, or "how subsidies accommodate applicants' needs";
  • Number and volume of approved projects (a weighting of 30%) – these values depend on the calls opened in the past and on the projects submitted. Their purpose is to represent the activity of the managing authorities, which always approve subsidies in the end. In 2008 the number and volume of approved subsidies showed an upward trend; we expect this trend to continue this year too;
  • Number of consultation sessions held by KB EU Point and number of questions received at the free information line 800 900 930 (a weighting of 15%)– reflects the activity of Komerční banka's clients and the way they use KB EU Point's services.

The EU Point Index calculation does not include the Transport Operational Programme. This Operational Programme is not primarily intended for ordinary applicants for funding; its beneficiaries are predefined depending on where the Government wants to build additional motorways or railway corridors.

Since the above are different indicators expressed in different units and have different magnitudes, we always compare a change in the current value against the long-term average. The average value of calls opened in the past is evaluated separately, and the current value is compared against this average. The current value is further factored into the average in the coming periods. For comparisons between indicators, weightings have been determined depending on the importance of the various indicators.

Komerční banka is one of the best run universal banks in Central Europe. It provides comprehensive services to clients in the areas of retail, corporate, and investment banking. The Komerční banka Group's 8,930 employees serve 1,632,000 clients, who can use an extensive network of 397 points of sale throughout the country. Komerční banka currently operates 679 ATMs and more than 958,000 of its clients use one of direct banking channels.

Komerční banka is part of the Société Générale Group, one of the largest banking groups in the euro zone (in terms of market capitalisation), whose 163,000 employees serve more than 30 million individual clients worldwide.