April 25, 2020 — Croatia's farming sector turned into a circular firing squad on Saturday after a leader in the Chamber of Agriculture claimed the nation's farmers owed the EU eye-watering sums of misused funds. The Agricultural Ministry later denied all allegations, while admitting some "irregularities" existed in EU-back funding for organic farming which were quickly weeded out.

The accusations by Chamber of Agriculture Vice President Antun Vrankić first appeared in a Vecernji List article about the dilapidated state of Eastern Croatia's farming industry.

"A Brussels control found that only two percent of the incentives paid for organic farming was justified, and as much as 98 percent were false," Vrankić said, a claim which sent shockwaves through the industry. The HRK 3 billion tally had not appeared in public. "And now they are demanding that the money be returned, three years back. We're talking about a billion kunas per year."

He added farmers were being asked to disperse the cost equally as an act of solidarity.

Agriculture Minister Marija Vucković called the accusations "untested and completely inaccurate" in a lengthy statement pushing back against Vrankić's claims. 

Croatia set aside nearly EUR 130 million in funds allocated for organic farming between 2014 and 2020, 15 percent of which came from government coffers. The boom in organic products — namely nuts — left the fund depleted. The Ministry requested larger sum in the next round of funds, which are still in negotiation and uncertain because of the coronavirus outbreak.

"Unfortunately, irregularities in the use of aid are present," the ministry admitted in its statement. "However, through regular field checks and inspections, such cases are identified and sanctioned in accordance with the scale of the irregularity identified, which has significantly reduced the number of irregularities over time."

Vrakić's claims came at a time of growing uncertainty of food supplies and Croatia's self-sufficiency should the coronavirus have a prolonged stay in Europe. His point, originally, was to show the inaccuracy of the agricultural sector's own production and capacity figures.

Vrakić said food production within Croatia fell below 40 percent, though governmental bodies wouldn't provide figures to back his claim. The EU funds, he added, add to the misconceptions about Croatia's ability to feed itself.

"Incentives are being raised to desolate fields where no one produces anything," he said.

As Glas Istre/Milan Pavlovic writes on the 8th of March, 2020, there are plans afoot for the Pula fortification system and the Kastel Atrium, which houses the Historical and Maritime Museum of Istria, to be connected by elevator to the Austro-Hungarian Zerostrasse tunnel at the foot of the hill, and then to a station on the intermediate level consisting of underground rooms of the fortress.

With the recent signing of a grant agreement from European Union funds in the 2014-2020 financial period between the City of Pula and the Ministry of Regional Development and EU Funds, the implementation of the strategic project entitled: "The Pula Fortification System as a New Cultural and Tourist Product" has now begun.

It is a project that included the revitalisation of existing infrastructure and the renovation of the Kastel fortress, which includes specific plans for the Kastel Atrium and the aforementioned information.

Thanks to this intervention, the whole area of ​​Kastel will be further opened up for both tourists and locals, especially to persons with reduced mobility, for whom the plans will greatly facilitate access. The implementation of the project will revitalise the existing infrastructure, which will be put into the function of tourism in a way to enrich new facilities, and a new visitor centre will be opened. Among other activities involved in this project, the plan is to set up a historical exhibition with a complete view of the Pula fortification system in one place.

At the same time, with the help of modern multimedia technology, the rich military history of the Kastel Atrium will be revived and visibly presented in the authentic ambience of the premises and in the underground tunnels of Zerostrasse, which themselves formed part of the former defense system of the City of Pula. Namely, the project aims to increase the supply of educational and other facilities for the benefit of all residents of ​​Pula, but also of the wider surrounding area.

''With this contract, the City of Pula has been awarded co-financing of nine million kuna in grants from the European Regional Development Fund, while the total value of the project stands at just over 23.3 million kuna,'' said Mayor Boris Miletic, adding that this was a significant project thanks to which the further valorisation of the the rich history of the Pula fortification system can be properly undertaken.

Miletic points out that this is a positive example of the sustainable management of material cultural heritage that Pula abounds with. For this reason, he adds, the valorisation and revitalisation of the heritage in the area, as well as leaning more towards tourism, are absolutely crucial when it comes to the ITU mechanism, as the instrument through which the funds for the realisation of this project have been secured.

The plan is for the project which involves the Kastel Atrium and much more to be completed by November 2022 and it is being implemented under the "Competitiveness and Cohesion 2014-2020" operational programme.

For the City of Pula, as the centre of a very urban area, the integrated territorial investment mechanism, which is in reality a new EU instrument, represents a strong development perspective and is an outstanding tool in the system of using EU funds. The powers that be within the EU have clearly recognised the importance of urban centres, and in this way, they're enabling a more efficient and proactive way to withdraw EU funds/grants and strengthen the role of cities in general.

The ITU mechanism responds to the economic, environmental and social challenges affecting entire urban areas and seeks to address them through an integrated territory-based approach.

From an urban point of view, this is a good example of implementing European projects at the local level. In addition to the project related to the Kastel Atrium and the entire Pula fortification system, several other significant projects will be implemented through the ITU mechanism in the Pula area.

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As Morski writes on the 3rd of February, 2020, the revitalisation of St. John's Fortress is the largest project ever awarded to the City of Sibenik with the use of EU funds. With a total value of more than 50 million kuna, the project was submitted on January the 29th, 2016 to a tender entitled "The preparation and implementation of integrated development programmes based on the restoration of cultural heritage".

On the first day of August of the same year, a contract was officially signed, whereby the City of Sibenik received a grant from the European Regional Development Fund. The European Union revitalisation of the Fortress of St. John was co-financed in the amount of 41.5 million kuna from European Structural and Investment Funds (under the Competitiveness and Cohesion operational programme), while the City of Sibenik provided the rest of the funds.

With this project, the City of Sibenik continued the restoration of its fortification systems (Fort St. Michael, Fort Barone), which is a significant element of both local and national cultural heritage. With the revitalisation of the Fortress of St. John, two units of the fortress will be renovated and equipped. The northern part is known as "Klijesta" and the southern part is known as "Zvijezda", or star.

The revitalisation of St John's Fortress with a total area of ​​18,657 square metres will see the restoration of the ramparts, the introduction of innovative facilities, attractions and content. At the foot of the northern defense rampart (klijesta), visitors will be able to enjoy a gastro-visual concept. With the help of the revolutionary 3D video mapping technique on the walls of the fortress, content will be displayed, which will create optical illusions and the impression of movement of static objects. St. John's Fortress will also house an educational campus equipped with smart interactive classrooms and presentation spaces. It will also provide quality accommodation with accompanying thematic programmes that will greatly contribute to the prolongation of the tourist season as well as the longer stay of visitors in the City of Sibenik.

Renovation of both parts of the fort and investment in the development of innovative facilities, adapted to different groups of visitors, will significantly improve the tourist and cultural offer. The project will network key actors in the cultural and tourism sector, with the aim of creating high value-added content and improving the overall strategic management of cultural heritage. Foundations will be created for the sustainable management of the resources and the offer of the City of Sibenik, and the popular Dalmatian city will be positioned as a cultural and tourist attraction, in which tradition and modern technologies are successfully merged.

The revitalisation of St John's Fortress will also be a channel for the promotion of (local) SMEs. In this way, with a direct increase in the number of visits, the number of employees will increase, according to a statement from the City of Sibenik.

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As Poslovni Dnevnik/Josip Bohutinski/VL writes on the 1st of January, 2020, with the help of EU funds, HZ Passenger transport will receive just over 1 billion kuna this year for the purchase of 21 brand new electric motor trains.

Out of the cohesion fund, HZ Passenger transport will receive 880.3 million kuna, ie 85 percent of the eligible costs, while the remaining 15 percent will come directly from the state budget. After signing the contract for the award of these grants of 1.03 billion kuna, HZ PP will launch an international public tender for the actual procurement of the new trains.

The Ministry of Maritime Affairs, Transport and Infrastructure says that thanks to EU funds, HZ PP will thus modernise its electric vehicle fleet with eleven suburban and ten regional trains, which will provide passengers with much more comfort, reduce their travel time, provide greater capacity and more reliable transportation, therefore improving the competitiveness of services provided by the trains overall.

They also state that the project which has been financially facilitated by the use of EU funds is a continuation of the work of addressing the advanced age of the fleet of trains. HZ PP has so far acquired 27 brand new trains, in accordance with the contract it signed back in 2014 with Končar - Electric Vehicles on the procurement of 44 new trains, worth a massive 1.6 billion kuna in total.

However, back then, only half of the amount was secured with HBOR's credit, so that in the first phase of the procurement, twenty electric motor trains were delivered for the suburban and regional lines and one diesel-electric train was procured for regional transport.

In the meantime, HZ PP secured 130.5 million kuna for the purchase of an additional four diesel-electric motor trains for regional transport without VAT with money from a World Bank loan.

Three have already been put out on the market, meaning that currently 27 new trains are currently running on Croatian railways. From the loan of the World Bank and Eurofima, HZ PP plans to realise a contract with Končar by the year 2022, which will result in the delivery of nineteen more new trains (seven diesel-electric and twelve electric motors), arriving from 2021 to 2024.

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As Glas Istre/Borka Petrovic writes on the 31st of December, 2019, in addition to the rest of the equipment that EU funds secured for Pula Hospital, a diagnostic coronary angiography device was also procured, which Secretary of State Željko Plazonić referred to as one of the most modern on the whole market.

Patients from Istria will no longer need to travel to Rijeka for such procedures, the secretary of state stressed, expressing hope that Pula Hospital will successfully form a young and professional team that will complete the whole story. Modern endoscopy equipment has also been purchased and four operating rooms have been newly equipped.

At the beginning of February 2020, Istrian patients will receive a state-of-the-art hospital and surgery at the General Hospital in Pula. In addition, new diagnostics and physical therapy are all located in the so-called Facility 2, a lower new building leaning against the Radiology building on Zagrebačka ulica (street). The total value of the project stands at 85.4 million kuna, and a grant of 38.4 million kuna has also been awarded from the European Regional Development Fund. The money is intended for the purchase of both medical and non-medical equipment for Pula Hospital.

Hospital Director dr. sc. Irena Hrstić noted that the European project for Pula Hospital was realised within the "Competitiveness and Cohesion 2014" operational programme. The whole story, as she explained, began back in 2013 when the competent ministry was looking for eligible applicants. Pula Hospital, Hrstić said, already had a project ready, and since they had the resources to start building a new hospital, they decided to ask for 38.5 million kuna for it to be properly equipped.

''We went a little naively into the whole process, not knowing what awaited us. Fortunately, we had assistance from both the County and the City of Pula who had experience with European Union funds,'' Hrstić said, adding that the entire project was successfully completed thanks to a team that worked very closely with each other.

The project, as was explained, lasted 48 months in total and the project team consisted of Dr. Hrstić as manager, financial expert Vladimir Barbić, project assistant David Demanuel and project administrator Bernardine Trento, later Vanessa Čakarević.

''The procurement plan consisted of a total of 30 procedures, and of the 38.4 million kuna awarded, we expect to ultimately withdraw 34.5 million kuna,'' stated Hrstić.

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Šibenik and its surroundings within the wider Šibenik-Knin County are an area for the possible extension of the implementation of the Integrated Territorial Investment Mechanism in the financial period from 2021 to 2027.

As Lucija Spiljak/Poslovni Dnevnik writes on the 6th of October, 2019, the past weekend in Sibenik was marked by European Union funds as part of a three-day event organised by the Ministry of Regional Development and EU Funds, which presented more than 300 people in the Amadria Park tourist resort with results and good examples of using funds to change Croatia for the better.

Prime Minister Andrej Plenković opened the Days of Regional Development and EU Funds on Saturday, pointing out that when taking over the EU Funds management system, Croatia was only at nine percent of the projects contracted, and it is now, rather encouragingly, at 75 percent.

Minister for Regional Development and EU Funds, Marko Pavić, visited the EU Funds Fair, where 38 Croatian OPGs and entrepreneurs who have been fund beneficiaries presented themselves.

"We have been paid 22 billion kuna so far. EU funds improve health care and 1.7 billion kuna has been invested in hospitals and equipment, more than one billion kuna has been invested in transport infrastructure, and Pelješac bridge, worth 365 million kuna, is a permanent ''monument'' to this.

''EU funds are also changing education in Croatia, and as such, more than one billion kuna has been invested in the e-school program, and 680 million kuna in curricular reform. 6.5 million kuna has been allocated to employment, so EU funds are also contributing to young people staying in Croatia,'' Pavić said.

He is optimistic about the financial period from 2021 to 2027, when one of the goals will be, as he announced, a simpler application procedure. The City of Šibenik is one of the most positive examples of the use of EU funds and a pioneer in the restoration of cultural heritage in Croatia.

They restored the fortresses of St. Michael (Mihovil) and Barone, making Šibenik the only city in Croatia with two cultural monuments that are inscribed on UNESCO's prestigious list of protected monuments. The fortress of St. John, a project worth 41.5 million kuna, expected to be completed by the summer of 2021.

"Thanks to EU funds and cooperation with various ministries, the economy, tourism, and the education system have developed, new jobs have started to be created and it's becoming easier to attract young people, and in the future. we'll focus even more on helping young families,'' said Šibenik's mayor, Zeljko Buric.

Money from EU funds is being invested directly in the entire area of Šibenik-Knin County, stated Mayor Goran Pauk, and the projects are either implemented, are currently underway, or are being prepared.

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As Novac/Gradonacelnik writes on the 26th of September, 2019, let's have a look at the Croatian cities that are fighting for the title of "EU Funds Champion" in this year's Best City selection, organised by Jutarnji list in collaboration with Gradonacelnik.hr's project and the Ipsos Agency.

The continental Croatian town of Križevci won the title of "EU Funds Champion" last year, and this year it aims to continue to defend it. The composition of the finalists this year is almost the same as it was last year, which is not surprising given that the calculation takes into account the four-year average of the use of EU funds. In addition to Križevci, Zadar and Ludbreg are once again fighting for the title, and Karlovac and Zagreb are also among the five most successful Croatian cities to use EU funds so far this year.

In recent years, Croatian cities up and down the country have recognised the importance and potential of using EU funds in financing their projects, and they are becoming more successful in doing so year after year. Last year, they withdrew more than 314 million kuna from EU funds, which is almost three times more than was withdrawn back in 2017, and almost four times more than in 2015.

The projections for this year show further growth, and the proactiveness from mayors across the country in calling people to use EU funds is on the up.

Let's take a look at the specific amounts, and mention that Croatian cities have pulled in more than one billion kuna over the four-year period currently under review. More specifically, exactly 1,004,010,921 kuna. An enormous amount of cash.

The fact that it is exactly EU projects which are the drivers of development and infrastructure in most Croatian cities is the reason why the category "EU Funds Champion" has also been introducted in a large selection of the best cities.

Consolidated city reports were used to calculate the best in this category. Croatian cities can withdraw EU funds directly or indirectly (through central government institutions), and data from 2015 to 2018 was used to calculate them. Thereafter, two indicators were created - the amount of EU funds per capita obtained by dividing the total amount of EU funds withdrawn by each city by the number of inhabitants of that city, and the share of withdrawn EU funds by each city in the total amount of all funds withdrawn from EU cities over the aforementioned four-year period.

Subsequently, these two indicators were standardised and aggregated into a common aggregate index using the methodology from the Croatian Ministry of Regional Development.

Based on these analytics and the subsequent data processing, an entrance into the finals this year was secured by the City of Karlovac, which withdrew 768 kuna per capita, and with 4.26 percent of the total amount of all withdrawn funds from the cities, Karlovac ranked among the top five.

The city of Križevci reiterated its entry into the finals, because, among other things, it withdrew 2,210 kuna per capita, it was therefore placed in the ''Top 3'' category of EU funds per capita, and in the ''Top 5'' category in terms of the share of the EU funds withdrawn.

Namely, the city achieved 4.65 percent of the total amount of withdrawn funds for all cities in the observed four-year period. The City of Ludbreg, with its realised 3,325 kuna per capita, is the best in the per capita category.

The coastal city of Zadar is among the best again this year because of its 5.91 percent of the total amount of all withdrawn funds of all Croatian cities in a four-year period.

Finally, the City of Zagreb secured its entry into the finals this year, as it withdrew as much as 18.76 percent of the total realised funds of all of the Croatian cities, thus achieving the best result in the aforementioned four-year period.

All in all, we will find out which Croatian city ranked the best in Šibenik on October the 4th, 2019, at the Days of Regional Development and European Funds event.

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Over the next year, much-talked-about works on the Hrvatski Leskovac - Karlovac lowland railway section are finally set to begin, with a little help from Croatian access to EU funding.

As Poslovni Dnevnik/Darko Bicak writes on the 12th of September, 2019, the reconstruction project for the existing track, and the construction of a second track of the Rijeka - Zagreb railway line on the 40.02 km Hrvatski Leskovac-Karlovac section, which is highly significant for the implementation of the Croatian lowland railway project, is eligible for co-financing from European Union (EU) funds, the Ministry of the Maritime Affairs, Transport and Infrastructure reported yesterday.

The competent ministry explained that JASPERS experts have now submitted a positive opinion to the Croatian Ministry of Regional Development and European Union (EU) Funds, a so-called IQR, for the proposal to co-finance the aforementioned project, with a total value of 3.5 billion kuna (with VAT included).

The ministry has since clarified that they do expect an official decision by the European Commission (EC) to give them the green light and ultimately approve the financing of the project within the next three months, and that the contract attesting to that will be signed by the end of this year.

The total eligible costs for co-financing are 2.7 billion kuna (excluding VAT), 85 percent of which will be co-financed through the Operational Program for Competitiveness and Cohesion, and the rest will come from the Croatian state budget.

The lowland railway will affect the overall competitiveness of the Port of Rijeka in the Northern part of the Adriatic by improving its connectivity with markets across Central Europe, such as those of Hungary, Slovakia and Poland, the ministry stated.

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Several Croatian companies have received an impressive sum of money for the development of ICT projects which will see their business improved.

As Poslovni Dnevnik/Marija Brnic writes on the 10th of September, 2019, Minister of Economy Darko Horvat stated that in the first, cancelled tender, the planned amount of the program was 53 million kuna, and in the renewed call, an allocation of 200 million kuna was secured, which was fully utilised, and in the meantime, another 163 million kuna was secured, which will also be distributed among eligible projects over the coming days.

Namely, a total of 1,299 applications were submitted, of which 1,018 were considered satisfactory, and funds from the allocation of 200 million kuna were distributed among 391 Croatian entrepreneurial projects.

The Minister of Economy attributed the credit for the successful completion of this "story" to his colleague Marko Pavić, Minister of Regional Development and EU Funds, with whom, in his own words, he has been cooperating brilliantly in recent weeks. Among the projects selected were a large number of small and micro companies, and the largest amount of one million kuna in grants was earned by three Croatian companies.

One of them is a Zagreb-based company called Balboa, which works in the graphic and advertising industry, whose project of integration and improvement of business processes through the use of ICT is worth 2.2 million kuna.

A project to improve business efficiency through the implementation of an ICT solution for which the Identalia clinic in Zagreb received a grant is slightly less in value, but with this program, the third Zagreb publishing company Alfa will realise a total of 1.9 million kuna for their project for improving overall competitiveness.

The support received by a Čakovec-based fodder (animal feed) factory stands at almost one million kuna (999 thousand kuna), and although the largest projects are from Zagreb, small businesses from all regions of Croatia as well as from various sectors are investing in their digitisation. Among the most valuable projects that participated were, for example, representatives of the companies Hotel Borovik from Tisno, Slavonski Brod's Đuro Đaković Montaža, Feroplast from Buje, Zigante truffles...

"The greatest interest of Croatian entrepreneurs, according to their experience in implementing various programs, comes precisely from the fields of information and communication technology, electronics and electrical engineering, automation, robotics... Therefore, I'm extremely pleased that with this support, we'll enable our entrepreneurs to apply information and communication technology more intensively, and that will certainly provide them with a stronger market position and increase their competitiveness and business efficiency,'' stated Marijana Oreb, a board member of HAMAG-BICRO.

And to illustrate the fact that turning in this direction is important, the concrete figures were highlighted by Janja Kulić from the company Kulić and Sperk audit. According to court records, Kulić stated, more than 107,000 Croatian entrepreneurs could bid for these funds, which means that they have shown a genuine and symbolic interest.

"Our tender draws money from European Union funds in a better way, and how well it does to make strides in the field of digitalisation is worth mentioning, too. It's an extremely important and potent tool for increasing competitiveness. I recommend that digitisation be an open topic on everyone's agenda and that all the possibilities to reach more and more entrepreneurs are considered,'' said Kulić, adding that it would amount to 20 billion kuna if even half of the aforementioned number of entrepreneurs in Croatia were digitised.

The Ministry of Economy recently held the European Market Open Doors Days for Croatian entrepreneurs, as a continuation of the activities started two years ago under the name "Sve je jednom mjestu" (Everything in one place), when it informed citizens and entrepreneurs across several Croatian cities about the possibilities and tools offered by the Internal Market Centre.

The ministry stated that such an opportunity to hold talks and better inform Croatian entrepreneurs about the freedom to provide services and move goods on the internal market will be provided on a monthly basis.

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As Morski writes on the 28th of August, 2019, the Ministry of Maritime Affairs, Transport and Infrastructure has announced the second major investment in the improvement of the port infrastructure in the function of coastal maritime transport, and the signing of a grant contract for the project entitled "the upgrading of Sali's town port on Dugi otok", the beneficiary of which is the Zadar County Port Authority.

''The project of upgrading Sali's port on Dugi otok includes the extension of the existing port by re-constructing the coastline, arranging the coastal area along the newly built coastline, and creating a breakwater for protection against waves in order to increase the security of maritime traffic in the port of Sali,'' announced Minister Oleg Butković, who is due to arrive in Sali on Thursday.

The aforementioned intervention will provide a year-round transportation service and enable a better connection between Dugi otok and the mainland, the minister said, and continued:

''The implementation of this project will enable the better quality of public maritime transport, greater passenger safety, long-term sustainability, the improvement of the general quality of life, better transport connections between the island to the mainland, greater mobility and a positive effect on economic development. Improving the quality of Sali's port infrastructure will ensure the integration of Dugi otok into the wider transport network, which will boost local economic growth and positively affect the demographic picture, as well as the urban development of the island.

The objectives of the project are in line with local, regional, national and EU strategic documents in the transport sector, as well as with the operational program for competitiveness and cohesion (2014-2020),'' explained Butković.

The total value of the project is an enormous 56,764,614.59 kuna, of which the EU contribution is 48,249,922.40 kuna, and Croatia's national contributions amount to 8,514,692.19 kuna. The duration of the works is currently expected to be 52 months.

By signing this agreement, a total of 89,355,660.19 kuna will be invested in port infrastructure projects in Zadar County through EU funds, of which the EU contribution is a staggering 75,952,311.16 kuna, and the national contribution is an equally impressive 13,403,349.03 kuna.

''Zadar County has always been the intersection of numerous very important transport routes, supported by the current and planned investments of our ministry,'' added the minister, then going on to announce:

''The project of construction of the Tkon ferry port on the island of Pašman is underway, which will improve communication and connection with the nearby islands, all public procurement procedures have been completed and the works are proceeding in accordance with the plans which have been set out. Investments were made in the port of Gaženica. Then, there's the investment in the renovation of Liburnia Zadar's fleet, where European Union funds co-financed the procurement of 25 new buses, which will be available to the citizens of Zadar as soon as in September 2019. In addition, as part of increasing road safety, we're also investing in projects for solving black spots in Zadar County.

There are also plans to start upgrading, reconstructing and increasing the capacity of Zemunik Airport, and we're currently in the process of preparing documentation for the future establishment of railway traffic between the City of Zadar, Gaženica port, and Zadar Airport.

The fact that the ministry is also focused on further investments in Zadar County's transport projects, both nationally and through EU funds, speaks volumes about the importance of the realisation of all the above-mentioned projects. Therefore, today, we're witnessing the beginning of the implementation of another significant project in Zadar County, which will more effectively connect the citizens of this county,'' concluded the Minister of Maritime Affairs, Oleg Butković.

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