In 2020, the world, including Europe, was suddenly hit hard by the coronavirus pandemic, which has caused the biggest economic crisis since World War II. To help EU Member States recover from the crisis and create foundations for more resilient societies and more sustainable economies, the European Commission, the European Parliament and European leaders reached an agreement on the establishment of the Recovery and Resilience Facility in February 2021 (Regulation (EU) 2021/241
). The primary aim of the Facility is to mitigate the economic and social impact of the coronavirus pandemic and make European economies and societies more sustainable, resilient and better prepared for future challenges and opportunities.
The Facility makes €723.8 billion in loans (€385.8 billion) and grants (€338 billion) available to support reforms and investments undertaken by Member States. To benefit from the support of the Facility, Member States have to submit their recovery and resilience plans (NRRP) to the European Commission. Each plan sets out the reforms and investments to be implemented by end of 2026.
Taking into consideration the main objectives of the Facility, the Government put a special emphasis in its National Recovery and Resilience Plan on the reforms and investments contributing to green and digital transition.
The measures and activities envisaged by the Plan will contribute to smart, sustainable and inclusive growth, creation of new jobs, economic productivity and competitiveness as well as to strengthening the economic, social and territorial cohesion of Croatia.
Croatia has secured almost HRK 75 billion (€ 9.9 billion) for the Plan, ie HRK 47.5 (€ 6.3 billion) in grants and around HRK 27 billion (€ 3.6 billion) in favourable loans.
Croatia's Recovery and Resilience Plan is also focused on measures supporting the framework for R&I, development and innovation as well as policies for the next generation, focusing on children and the youth. In addition, considering the causes and consequences of the latest crisis, the Plan envisages support for activities related to strengthening the resilience of the healthcare system to prepare it for any future challenges.
The NRRP comprises five components and one initiative:
- Public administration, justice and state assets
- Education, science and research
- Labour market and social protection
- Initiative: Renovation of buildings
The implementation of the Croatian RRP is expected to start in late 2021, after its confirmation by the Council of the European Union based on the proposal of the European Commission.
By end of 2021, Croatia can already expect an advance payment of HRK 6.1 billion, ie 13% of the grant amount allocated under the Plan.
The payment of grants under the Facility is subject to the fulfilment of output indicators as defined by the NRPP for each of the planned reforms and investments.
For additional information on the National Recovery and Resilience Plan 2021-2026 please see the dedicated website