The EU Point Index, compiled on a regular basis by KB EU Point to monitor the activity on the Czech subsidy market, maintained its upward trend in May and stayed above the long-term average.

In May, the activity of the players in the subsidy field was above the average level again, although not as much as in the preceding months. The high value of the EU Point Index (115 points) is attributable to the relatively large allocations under open calls, because more than CZK 57 billion was available to applicants in the schemes under review.

Applications were newly received in Priority Axis 1 Initial Training under Operational Programme Education for Competiveness (inter alia, support for equal opportunities, training of teachers, fight against bullying and drugs in schools, etc.) with an additional allocation of CZK 1.65 billion. Further, in May the Ministry for Regional Development launched a subsidy scheme under IOP for improving the environment in problem-ridden housing estates (revitalisation of public areas and regeneration of residential buildings).

The volume of approved subsidies continues to grow; in May alone, for example, under Operational Programme Enterprise and Innovation subsidies to businesses totalling CZK 1.4 billion were approved.

In the following period a moderately above-average subsidy activity is expected to continue; applications for registration in the Development and Innovation - Project scheme under Operational Programme Enterprise and Innovation have been accepted, the Real Estate scheme will newly be reopened (with CZK 4 billion available), and applications for renewable energy sources will be accepted under Operational Programme Environment.

Under Operational Programme Research and Development for Innovation, two calls with an unusual volume of subsidies will be running in parallel: from August, applications for subsidies to both European Centres of Excellence (allocation CZK 17 billion) and regional R & D centres (allocation CZK 11 billion) will be accepted.

KB EU Point provides KB's clients with assistance in the implementation of subsidised projects. Relationship managers will search, free of charge, for subsidy schemes appropriate for each specific project and the bank's EU regional specialists will provide detailed consultations. Specialised companies with proven experience and expertise then prepare applications for subsidies and take care of complete project administration. The selection of a particular company is left up to the client at all times. The bankers also recommend the optimum project financing, compliant with the subsidy conditions. More information can be obtained from a relationship manager or at www.eupoint.cz.

KB EU Point Index - calculation method

The EU Point Index aggregates data from the whole market into a single index that can be easily interpreted. For the public, it shows the general trend of developments in the key areas of the subsidy market in comparison with the long-term average. The 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";
  • 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 by the government's development plans).

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.