Croatia will receive a total of €9 billion from Cohesion Policy in 2021-2027 in the framework of its Partnership Agreement with the Commission to promote the economic, social and territorial cohesion of its regions and its green and digital transitions. These investments will help reduce regional economic disparities and enhance skills, training, and employment opportunities. The EU funds will also support the development of a competitive, innovative, and export-oriented Croatian economy.
The country will dedicate nearly 31% of European Regional and Development Fund (ERDF) and 39% of Cohesion Fund resources to climate objectives. In particular, €2.56 billion will help the country improve energy efficiency, increase the share of renewables in energy production up to 60% of electricity in 2030, enhance the circular economy and support climate resilience and biodiversity. More than €650 million will be invested in this later objective.
Moreover, €179 million from the Just Transition Fund (JTF) will mitigate the economic and employment effects of the green transition. This will be done through decarbonising energy-intensive industries, strengthening entrepreneurship, and investing in skills of the workers, diversifying the economy in the most affected regions, enhancing cooperation between business and research, and increasing employment opportunities for the workforce.
€1.7 billion from the ERDF will support Croatia’s innovative and smart economic transformation by increasing the competitiveness and internationalisation of small and medium-sized businesses (SMEs) and contributing to improve the skills of employees.
Investments will reach the whole territory of Croatia, including its poorest areas. Almost €500 million will help improve the international competitiveness of Croatian regions by facilitating their industrial transition. Additionally, 12% from the ERDF will be dedicated to urban development and around 3% to developing smart and sustainable islands. Mountainous areas will also receive increased support. In this way, EU funds will help all parts of Croatia to catch up with the more economically and socially developed capital, Zagreb, and with the most developed EU regions.
Nearly €1 billion will enhance regional, local, and cross-border mobility in all sectors, including developing a sustainable, smart, secure, and intermodal transport network linked to the Trans-European Network – TEN-T, as well as much-needed improvements in the national rail infrastructure, and further advancements in maritime transport in this coastal country.
“With this Partnership Agreement, Croatia makes a crucial step towards meeting its 2030 national social targets set in line with the European Pillar of Social Rights Action Plan. I welcome the strategic focus of the ESF+ investments, boosting quality jobs, providing workers with the skills they need to navigate today’s and tomorrow’s labour market, and investing substantial funding for social services that are key to social inclusion, including assistance to people with disabilities, healthcare, and long-term care.”, says Nicolas Schmit, Commissioner for Jobs and Social Rights.
Almost €2.5 billion from the European Social Fund Plus (ESF+) and ERDF will boost quality employment, skills, education, healthcare, and social services. Well-designed active employment support, in particular for women, young people and vulnerable groups, will go hand-in-hand with improving the capacity of labour market institutions, such as public employment services, including through digitalisation.