The European Commission on Tuesday presented its proposal for cohesion policy for the period 2021-2027 in Zagreb, which would bring Croatia 5.6 percent less funding in this program, but aims to simplify and increase the flexibility of the rules.
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In May, the European Commission proposed a new multiannual financial framework (MFF) for the period 2021-2027, which is nominally slightly higher compared to the current budget period, but foresees lower amounts for cohesion policy and agriculture.
Cohesion policy is the main instrument for assisting poorer regions in the EU to catch up with developed areas. Therefore, the largest part of these funds is invested in the poorest regions, with GDP below 75 percent of the European average, although all regions are entitled to cohesion funds.
The Commission’s proposal for the new framework focuses on five investment priorities where the EU can achieve the best results: a smarter Europe that invests in innovation and digitalization, a green Europe without carbon, a more connected, social Europe, and a Europe closer to its citizens.
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Investments in regional development will strongly focus on the first and second goals, with 65 to 85 percent of funds allocated to these priorities.
Vittoria Alliata di Villafranca, Director-General for Regional and Urban Policy of the European Commission, stated in a media statement before the official presentation that the key aspect of the new proposal is the simplification of rules to make access to funds easier, and flexibility that would allow financial instruments to be more easily adapted to changing conditions.
The Director revealed that the cohesion budget had to be reduced due to the United Kingdom’s exit from the European Union, which contributed significant funds to the budget, but also due to new priorities such as security, protection of the external border, and the migrant crisis.
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“This creates significant pressure on the budget, and that is why we had to make certain decisions,” she said.
Regarding Croatia, it is expected to receive 5.6 percent less funding under the cohesion policy in the next framework, revealed Velimir Žunac, State Secretary at the Ministry of Regional Development and European Funds.
Villafranca noted that it is true that Croatia should have such a percentage of funds less, but it should be taken into account that the cohesion budget has been reduced by 10 percent.
Žunac emphasized that increased co-financing rates are unacceptable for Croatia as the youngest member state. The EU previously allocated 85 percent of the funds, while states provided the remainder, and in the new framework, this percentage is expected to decrease to 70 percent.
“Even if we had more money, and we must have a larger share of our own financing, problems will arise. This is extremely important,” Žunac warned.
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Croatia had 10.7 billion euros available in this financial perspective, and in the new framework, it is expected to have around 9.8 billion euros, the State Secretary revealed, emphasizing that these are not final figures.
He revealed that Croatia has responded to this proposal and is among the countries that are less affected by cuts than others.
The new budget must be approved by the European Parliament and the governments of the member states. Žunac stated that Croatia’s opinion on the cohesion policy proposal is shared by the Visegrad Group countries, Slovenia, Bulgaria, and Romania.
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Villafranca highlighted that the discussion has just begun, but she sees goodwill among most members of the European Parliament and government representatives for a faster negotiation process, aiming to conclude before the European elections in May next year.
“The initial reactions from the states are that the proposal is going in the right direction regarding the simplification of rules, and we are very proud of that,” concluded the director.
