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Without European funds, Croatia’s GDP would be 8 percent lower by the end of 2030

by AI | 29.Nov 2024 | Europe in brief AI

The Croatian minister in charge of EU funds emphasizes the importance of European funds for the faster development of Croatia and catching up with richer countries.

Zadar, November 22, 2024 - The Minister of Regional Development and EU Funds at the ceremonial session of the City Council on the occasion of the City of Zadar Day. photo HINA/ ml

BRUSSELS – The Croatian gross domestic product (GDP) will be eight percent higher by the end of 2030 than it would be without the aid from European funds, therefore Zagreb advocates for the continuation of a strong EU cohesion policy, said Croatia’s Minister of Regional Development and EU Funds, Šime Erlić, on Thursday in Brussels.

“Cohesion policy is a key policy for financing projects in Croatia that are realized from European funds, and that is why we expressed our strong stance that we want to preserve a strong cohesion policy in the future after 2027,” Erlić stated after a meeting of the EU Council in which ministers from member states responsible for cohesion participated.

The main topic of the meeting was the cohesion policy after 2027, that is, after the expiration of the current seven-year programming period.

“After 2027, we want the cohesion policy to remain equally important so that we can continue using EU funds, which are a crucial driving force for the development of Croatia,” emphasized the minister, adding that these funds help the country rapidly catch up with those more developed than itself.

Erlić said that according to the Commission’s report on economic, social, and territorial cohesion, the Croatian GDP by the end of this decade will be 8 percent higher than it would be without cohesion funds.

The Commission is considering the idea for the next seven-year budget period from 2028 to 2034 to condition the use of cohesion funds with the implementation of reforms and investments, similarly to how funds from the Recovery and Resilience Mechanism are approved. Currently, cohesion funds are approved based on meeting pre-agreed criteria, while recovery fund funds for the pandemic are granted after reforms and key milestones in national plans of member states are achieved.

Such a reform would require the consent of all member states, and many of them are concerned that it would lead to centralized management of European funds, meaning a reduction in the role of local and regional authorities in decisions on spending these funds.

Minister Erlić highlights the positive experience of using funds from the Recovery and Resilience Mechanism, particularly the faster implementation of reforms and related investments, and that it should be retained in future cohesion policy.

He added that at the same time, the involvement of all stakeholders at the local and regional level in planning and implementation of plans for the use of European funds should be maintained. (28 November 2024)