EU funds are an important, but not unquestionable source of financing

-EU funds are an important, but not unquestionable source of financing because a well-prepared strategic framework at the national and local levels, the inclusion of users in the planning process, and users’ caution in planning costs and project prices will be key to the successful use of structural and investment funds after Croatia joins the European Union on July 1st- is the main message from the participants of the conference European Funds after Accession to the European Union – Towards a New Financial Perspective, held on Wednesday, June 19th at the premises of the Croatian Chamber of Economy in Zagreb.

The conference was organized by the Institute for Entrepreneurship Development and European Projects – IRPEU, the Croatian Chamber of Economy, and the Association of Cities, under the high patronage of the Embassy of the Kingdom of the Netherlands, the Ministry of Regional Development and European Funds, and the company EU PROJECTS.

The attendees were greeted at the beginning by the Ambassador of the Kingdom of the Netherlands, Her Excellency Stella Ronner Grubačić, the Vice President of the Croatian Chamber of Economy Vesna Trnokop Tanta, the editor of the portal EU-PROJEKTI.INFO Ariana Vela, the coordinator of the Association of Cities Nives Kopajtich-Škrlec, and Jakša Puljiz, Deputy Minister of Regional Development and EU Funds Branko Grčić.

Croatian users can expect over 450 million euros from the European Union’s structural funds to be available for projects by the end of this year, and at least one billion euros each year until the end of 2020, reminded Dubravka Flinta, head of the National Fund sector at the Ministry of Finance, which is almost 13 times more money compared to the existing IPA program.

Zvonimir Savić, Deputy Director of the EU Center at the Croatian Chamber of Economy, introduced the structure and distribution of structural funds to over 170 attendees from the public, private, and non-governmental sectors, while Gabor Kende and Viktoras Sirvydis shared their experiences in working with EU funds, as well as success stories from Hungary and Lithuania.

During two panel discussions, many issues that are extremely important for Croatia today were raised, such as the criteria for dividing the country into NUTS II statistical regions, as well as the knowledge of potential Croatian users about what can and cannot be financed from EU funds. Dubravka Flinta from the Ministry of Finance announced that up to 35 percent of the pre-financing project costs could still be co-financed from the National Fund, and the panelists collectively urged users to control the costs of each phase of the project, but especially its price after the end of co-financing by EU funds, so that the project does not become a significant financial burden for users and ultimately lead them to bankruptcy.

The official conclusions of the conference are:

EU funds are an important, but not unquestionable source of financing for projects because effective implementation requires a well-prepared public administration, strategic documents, and quality projects.

It is necessary to timely involve the interested public in the process of preparing strategic documents, especially current and future users of the funds. Those who implement projects know what investments need to be supported.

It is important not to neglect the financial aspect of projects, that is, to ensure sufficient funds for their co-financing so that projects can be completed. It is even more important to ensure financing after the project is completed, especially when it comes to infrastructure; constructed facilities need to be financed even after the end of European funding.

It is important not to forget that, apart from structural funds, Croatia also has access to funds from Union programs, so efforts should be made towards intersectoral and international cooperation. Only quality partnerships lead to growth, development, and progress.