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.

Towards a net zero carbon and resilient economy

Croatia 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.

Increasing economic competitiveness and digitalisation

€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.

Reducing regional disparities

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.

Improving connectivity

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.

Social inclusion, employment, education, training

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.

Investments throughout all education levels will provide tangible improvements in the education system, from early childcare to adult learning. These investments will also strengthen upskilling and reskilling to better match changing labour market needs and develop building blocks for Individual Learning Accounts (ILA).

The risk of poverty and social exclusion is particularly high for older people, women, and persons with disabilities. Based on a strategic mapping of needs, the ESF+ will therefore strongly invest in the social care system and the transition from institutional to community-based social services, particularly regarding the assistance for persons with disabilities, long-term care, and aid for the most deprived. The Partnership Agreement will also support training of medical staff and strengthen the emergency medical response system and telemedicine services.

Sustainable fisheries

The European Maritime, Fisheries and Aquaculture Fund will invest €244 million in sustainable fisheries and protection of marine biodiversity and ecosystems in the Adriatic Sea. The Fund will also further support the development of sustainable and low-carbon aquaculture and processing sectors, the economic and social vitality of fisheries communities, and the implementation of international ocean governance. All supported actions will help Croatia to contribute towards the objectives of the Common Fishery Policy as well as the key EU policy priorities outlined in the European Green Deal, the Farm to Fork and the Biodiversity strategies.

Source