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The European Commission Plan Ensures 10 Billion Euros for Croatia - a Strong Signal for the Economy and Investments

Met dank overgenomen van Kroatisch voorzitterschap Europese Unie 1e helft 2020 (Kroatisch voorzitterschap), gepubliceerd op woensdag 27 mei 2020.

Croatia can be satisfied with the Recovery Plan drafted by the European Commission, said today Prime Minister Andrej Plenković. He added that 10 billion euros have been allocated to Croatia, which should help the economic recovery following the crisis caused by the coronavirus pandemic.

At a press conference held today, Prime Minister Andrej Plenković commented on the Recovery Plan of the European Union, which was earlier during the day presented by the President of the European Commission Ursula von der Leyen stressing that it is very important for all the Member States, especially for Croatia.

“The impact of this crisis is unprecedented and this demonstrates how important is European solidarity, unity, leadership, determination and support to Member States and all citizens of the European Union,” stated Plenković adding that this is also a proof to all those who have doubts how good it is to be a member of the European Union in a situation like this one.

Much Higher Allocation to Croatia in the New European Budget

The European Commission presented its plan entitled “Next Generation EU“ that plans 750 billion euros of support to the Member States. A new proposal for allocating 1,100 billion euros within the framework of the new Multiannual Financial Framework will be presented as well.

“Over 10 billion euros is envisaged for Croatia through the instrument Next Generation European Union, with 7.3 billion euros of grants and 2.65 billion of possible loans,” reported Prime Minister Plenković, explaining that this is the money intended for the recovery of the Croatian economy during the next four years.

He announced that the Commission will propose a Multiannual Financial Framework providing for an allocation to Croatia that will be significantly better and higher than in the proposal that was on the table in February. He stated that this is the result of quality communication with the Commission, which resulted in a high amount of funds.

The Significance of the Membership in the European Union for Economic Recovery

“I would like to send a message to the Croatian public that in these times of crisis we can see the significance of membership in the European Union and the importance of European funds that help us returning back to the path of economic growth,” stated the Prime Minister and announced that in the following days the Government will provide detailed information on how much funds have been envisaged for different areas.

Responding to the question whether he believes that all Member States of the EU will agree with the proposals of the European Commission, Prime Minister Plenković responded affirmatively and added that this has already been “tested”. As he explained, grants will be awarded using the usual method and loans, depending on the needs, will be more favourable since they are approved at the level of the EU and not for each state individually.

Moreover, the Prime Minister expressed his conviction that the EU support will additionally strengthen Croatia's financial reputation before international financial institutions.

Enormous Support for Croatia to Find a Quicker Way out of the Crisis

“This is the essence and there you can see the strength of what I have already mentioned several times - our right path towards the membership in the euro area would additionally strengthen our financial position on the international stage. Such document and such proposal from the Commission will even more strengthen very high reputation that we currently have among international financial institutions and on the international financial markets,” he emphasised.

“This is an enormous support to Croatia under these circumstances to find a quicker and quality way out of the crisis,“ stated the Prime Minister.

He announced that a meeting of the European Council has been scheduled in Brussels on 19 June. There, a political consensus will be sought on this Commission proposal and on the proposal for the Multiannual Financial Framework. If this will be achieved, Prime Minister Plenković added, then all the necessary decisions will be made until the end of the year, considering the required procedure.

“With such an instrument we maintain employment and go fast in the direction in which ultimately both the European Commission and the European Bank for Reconstruction and Development and other international institutions have seen us, when it comes to fast and high economic growth rate in Croatia in 2021,“ stated the Prime Minister emphasising that this is an additional leverage for quicker recovery of Croatia following the coronavirus epidemic.

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