The European Commission (EC) approved the payment of the second tranche of the National Recovery and Resilience Plan (NRRP) worth 700 million euros to Croatia

, and the funds will arrive in the next few days. By the end of this year, Croatia will receive a total of more than 2.2 billion euros, or 40 percent of the allocated grants.

The Government's National Recovery and Resilience Plan 2021-2026. (NPOO) adopted at the end of April last year, the Commission approved it in July. In September 2021, Croatia received an advance of EUR 818 million based on the NPOO, while in June 2022 the first installment in the amount of EUR 700 million was paid. The NPEO is financed by grants in the amount of EUR 5.51 billion, with payments under the RRF being performance-based and contingent on Croatia implementing the investments and reforms outlined in the NPEO.

The second request for payment was based on 25 key stages and target values, and Croatia implemented reforms and investments in the field of business environment, public administration, justice, social policy, employment, education, skills, energy and energy efficiency, water management and connectivity. To improve the business environment, Croatia adopted an action plan containing 33 measures to reduce non-tax and parafiscal levies and 17 measures to reduce fees for taking professional exams and established a digital platform for the seven most common business fees. Financial instruments have also been established to improve access to financing for companies investing in green and digital technologies, as well as companies that are still in the development phase. Amendments were made to the legislative framework, the purpose of which is to encourage the voluntary merger of local government units in order to improve the efficiency and transparency of providing public services to citizens, regardless of their place of residence.

 In an effort to switch to renewable energy sources, the Hydrogen Strategy was adopted, which provides a framework for the production and use of hydrogen. The emphasis is on renewable and green hydrogen as a replacement for fossil fuels and on increasing the stability of the power system based on renewable energy sources, with the ultimate goal of energy self-sufficiency, transition to clean energy and sustainable mobility. Furthermore, the Program for energy renovation of public sector buildings was adopted, the goal of which is to reduce energy consumption in buildings and increase their safety, including in the event of an earthquake. Part of the funds was allocated to improve water services in rural areas, and grants and financial instruments were provided to support companies and industries in adapting their business and industrial processes to the green and digital transition. A number of measures related to the digital transition were implemented in the business, agricultural and judicial sectors. A new digital platform for online payment of business fees has been launched, which contributes to reducing the administrative burden for companies. Cultural and creative industries will benefit from updated copyright rules that make it easier to license creative, cultural and media content online. Finally, the legal and administrative requirements for the planning, licensing and construction of electronic communication networks have been simplified and adjusted to accelerate the coverage of the Internet (high capacity network) and 5G. The implementation of 45 key stages and target values ​​related to the third request for payment are in a high stage of realization.Among the measures that should be completed by the end of 2022, the adoption of the Strategy for evaluating the economic effects of regulations for the sector of small and medium-sized enterprises and the implementation of measures from action plans to reduce the administrative burden on the economy are particularly important, as well as the modification of the framework for public procurement so that the use e-appeals became mandatory. There are also changes to labor legislation, the Health Care Act and the Mandatory Health Insurance Act and the social welfare system. It is also crucial to reduce the share of municipal waste that is sent for disposal. The new Law on Scientific Activity and Higher Education and the improvement of the research and innovation system are particularly important in order to focus the educational and public research system on success. 

Source: EU-projects info