Plenković: Money from EC will boost growth and development

The money that the European Commission on Tuesday disbursed to Croatia is the biggest amount ever paid into the Croatian budget by a foreign institution and it will help us head in the direction of growth and development, Prime Minister Andrej Plenković told a press conference after a meeting of the parliamentary majority.

The European Commission earlier in the day paid an advance of €818.4 million (HRK 6.14 billion) to Croatia from the Recovery and Resilience Facility.

The advance payment was made on the basis of the National Recovery and Resilience Plan 2021 - 2026 (NPOO), which was positively assessed by the European Commission in July. The Council of the EU upheld the implementing decision approving the assessment, making €6.3 billion or HRK 47.5 billion in grants available to Croatia.

"This is just a part of the HRK 47.5 billion made available to Croatia through the NextGenerationEU instrument," Plenković underlined and added that given that the institutional structure had been established to implement projects and priorities related to various areas - from health, public administration, reconstruction, transport and energy - there was no topic that would not be addressed by the National Recovery and Resilience Plan, which was complementary to the other large source, the EU's seven-year budget.

He recalled that during the coronavirus crisis last year, Croatia had secured €25 billion for the current, development decade, "which will help us go in the direction we are heading in now." "(We have had) a fast and high economic growth and recovery, a brilliant tourism season, and we have preserved jobs. Now is the time for those funds to boost the economy's growth and development and competitiveness," said Plenković. 

The advance will also be used for reconstruction, he said responding to reporters' questions.

He added that Croatia has an additional €3.5 billion available in very favourable loans, virtually interest-free, which it can use until 2026.

The NPOO comprises 77 reforms and 152 investments where these funds will be used. It has five components and one initiative: the business sector, with investments amounting to HRK 26.2 billion or 54% of the total amount; public administration, justice and state assets (HRK 4.36 billion or 10%); education, science and research (HRK 7.5 billion or 15%); labour market and social protection (HRK 2.09 billion or 4%); health (HRK 2.56 billion or 5%); and the initiative "Reconstruction of buildings", with planned investments amounting to HRK 5.95 billion or 12% of the NPOO funding.

The deadline to implement all the reforms and investments under the NPOO is 31 August 2026, with further payments from the Recovery and Resilience Facility made on the basis of half-yearly requests for payment whose approval will depend on indicators related to the implementation of reforms and investments Croatia has pledged to undertake under the NPOO.

(Hina)

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