Danish State Visit to Croatia

Zagreb, 21 - 24 October 2014

EU funds will be one of the most important instruments to tackle the main development challenges for Croatia and to implement the Europe 2020 strategy. For rural development and fisheries, priorities for funding should also contribute to the Common Agricultural and Common Fisheries Policies

The amount of funding significantly increased with Croatia’s EU accession. EUR 8.5 billion in total will become available in the period from 2014 – 2020.

Source: Croatian Ministry of Regional Development and EU Funds

Structural funds

European Regional Development Fund (ERDF):

It is the most important fund for financing private and public investments. 50% of total allocated funds for Croatia are intended for ERDF. Its purpose is to increase the level of development; investments in private companies (SMEs) and regional and local infrastructure. Croatia will be able to draw the funding from ERDF for the projects involving environmental protection activities, infrastructure (telecom, energy, transport, health, education, and urban development infrastructure), ICT, R&D, manufacturing, tourism. Co-financing rate is up to 50% of total project value and exceptionally up to 75%.

European Social Fund (ESF):

The purpose of this fund is to provide economic and social equality and fulfil strategic aims of employment policy in regions with high unemployment. This fund supports projects for human resources development. Co-financing rate is up to 50% of total project value and exceptionally up to 85%.

New EU member, Internal market openings, EU funding (2014 - 2020 EUR 8.5 bilion), Regional hub, Western Balkan region.

Cohesion fund

This fund is intended for big infrastructural projects and is aimed at Member States whose Gross National Income per inhabitant is less than 90% of the Community average. Croatia will be able to use Cohesion Fund for investments in environment and transportation, improvement of environmental infrastructure, energy efficiency and renewable energy sources, Trans-European transportation system and transportation infrastructure which ensures sustainable urban public transportation. Co-financing rate is up to 85% of project expenditure (projects bigger than EUR 25 million).

Source: Croatian Ministry of Regional Development and EU Funds

EU funds for agriculture and fisheries

European Agriculture Guarantee Fund

In 2013 funds for direct payments amount to EUR 93 million (payable in 2014) and EUR 9 million for investments in market organization measures. The expected financial package for Croatia in upcoming years is around EUR 373 million per year for direct payments. In addition Croatia is provided with financial envelope for de-mining, up to EUR 9.6 million per year, and additional “wine” envelope amounting to EUR 10.8 million per year.

European Agricultural Fund for Rural Development

Until the end of 2013 the implementation of the IPARD (pre-accession fund for rural development) programme continues for which EUR 27.7 million is provided. Funds available for the period 2014-2020 will be substantially bigger, around EUR 330 million per year totalling approximately EUR 2.5 billion for the mentioned period. Out of that amount EUR 100 million has to be used for investments in renewable energy in agriculture.

European fisheries fund

Total allocation that is made available to Croatia under the European Fisheries Fund in 2013 amounted to EUR 8.7 million. With the budgeted share of Republic of Croatia of EUR 2.9 million this totals EUR 11.6 million for the implementation of the measures established by the Operational Programme for Fisheries. The European Commission has welcomed the European Parliament's vote on the 2014-2020 European Maritime and Fisheries Fund (EMFF). This vote is a crucial step to securing political agreement by the end of the year, which would allow the fund to be in place as of January 2014.