ZAGREB, 5 March, 2021 - Brussels will leave it to Zagreb to decide on how to distribute money from the EU Recovery Fund, the Friday issue of the Jutarnji List daily reports, noting that there are no restrictions on aid to enterprises.
There are no strict limits in drafting the national recovery and resilience plan, through which around HRK 45 billion of EU funds will be made available to Croatia to help it recover from the crisis caused by the coronavirus pandemic, in terms of how much funds can be allocated for public investments and how much for private investments, as there is no such distinction in EU regulations.
This conclusion is based on a reply from the European Commission, after the Croatian Employers' Association asked that at least 50% of the available money be disbursed in direct grants for investments by the private sector, instead of spending most of the HRK 45 billion on investments in the public sector.
According to an interpretation presented earlier by Croatian negotiators and published by Jutarnji List, entrepreneurs would have access, through the National Recovery and Resilience Plan, to direct grants and loan subsidies and guarantees in the maximum amount of HRK 4.5 billion, or only 10% of the available amount. In citing the amount, Croatian negotiators referred to restrictions imposed by the EC.
Zvonimir Savić, PM Andrej Plenković's advisor and national coordinator for the National Recovery and Resilience Plan, has nonetheless said that around 30% of the HRK 45 billion could end up in the private sector, if one takes into account the involvement of businesses in planned public projects, from research and development, energy transition and development of innovative tourism to stronger food supply chains, the daily says.
