Development Agreement Signed for the Region of Slavonia, Baranja, and Srijem

The development agreement for the region of Slavonia, Baranja, and Srijem, which secures funding for the implementation of 29 strategic development projects, was signed on Friday in Vinkovci during the 5th session of the Council for Slavonia, Baranja, and Srijem.

In the presence of Prime Minister Andrej Plenković and numerous ministers, representatives of the Ministry of Regional Development and EU Funds, the Ministry of Agriculture, and five Slavonian counties signed the development agreement, which secures funding for the implementation of 29 strategic development projects with a total value of 700 million kuna and an additional 50 million kuna for their preparation.

The objectives of the cooperation are to strengthen competitiveness and balance regional development, respond to key social challenges, reduce poverty, and increase the standard of living in Slavonian counties.

In his introductory speech, Prime Minister Plenković reported that within the Slavonia project, valued at 2.5 billion euros, 6.8 billion kuna has been contracted to date, which is 36 percent of the targeted amount. He assessed that one of the most important events of today’s Council session is the signing of the Development Agreement for Slavonia, which is a pilot project between the Government and five Slavonian counties and a new mechanism for directing funds from EU funds and the state budget.

Next week, legislative proposals on assisted areas

He announced that next week the Government will present proposals for laws on assisted areas, islands, mountainous areas, and laws on housing assistance in assisted areas, while final consultations with the European Commission regarding the law on the city of Vukovar are ongoing, which forms a package of laws that builds on what the Government is already doing in the area of regional development and decentralization.

He added that the next Council session is planned for September 21 in the Osijek-Baranja County, which will then be visited by the EU Commissioner for Regional Development Corina Cretu, so that those responsible for regional development policy in the EU can also see the synergy in the implementation of the “Slavonia” project.

Gabrijela Žalac, the Minister of Regional Development and EU Funds, assessed that the development agreement is a new method that aligns the needs of the national level with the priorities of the local level, in accordance with county development strategies, focusing on economic development in priority sectors recognized in regional development strategies and smart specialization.

She emphasized that at least 50 percent of the projects must be directed towards activities with a direct impact on the economy in local government units, expressing confidence that the development agreement will contribute to GDP growth, employment, and the index of regional competitiveness and development. She reported that the 700 million kuna for the implementation of the Development Agreement in five Slavonian counties will be secured from the Operational Program Competitiveness and Cohesion and the state budget and directed towards completed projects with building permits.

Contract with the World Bank for Advisory Services

Following this, the agreement “Slavonia, Baranja, and Srijem” was signed with the World Bank for the provision of advisory services, aimed at supporting Slavonian counties in increasing the efficiency of using EU funds in the current financial perspective and preparing EU projects for the next period. The agreement was signed by the Minister of Regional Development and EU Funds Gabrijela Žalac and the World Bank Director for Croatia Elisabetta Capannelli.

Speaking about the agreement with the World Bank, Minister Žalac stated that it is known what the World Bank has done in other EU member states and believes that additional funds can be found in this way to reverse existing trends in Slavonia.

She added that the agreement is worth 6.2 million euros, of which 85 percent will be secured from EU funds, and the goal of the agreement is to establish a developmental diagnosis for individual areas in Slavonia that have developmental potentials to increase efficiency in using European structural and investment funds.

“Slavonia has genuine economic potential, but in recent years, some of its most talented and gifted residents have been leaving. Our team will closely cooperate with the Ministry to make the best use of EU funds to support productive activities in Slavonia. This requires cooperation among several ministries, regional authorities, the private sector, and civil society. Worldwide, we have seen that successful urban areas and regions are those that have joined forces for growth and strategically use funds for the most promising opportunities,” Capannelli stated, among other things.

Demography, Social Policy, and Cultural Projects

At the session, measures for demographic revitalization and social policy were presented by the Minister of Demography, Family, Youth, and Social Policy Nada Murganić. She announced that, as part of the Government’s efforts to improve material conditions in kindergartens, for which 117 million kuna has been secured from the state budget, contracts for 47 kindergartens will be submitted, with 29 million related to five Slavonian counties.

She added that 60 million kuna has been secured from EU funds for the construction of kindergartens, and competitions are ongoing to increase the capacity of kindergartens and for investments in staff who will work in kindergartens, aiming to ensure dual-shift work.

Murganić stated that over 59 million kuna has been directed from various funding sources last year and this year to support different population groups, youth, people with disabilities, and to provide meals for children at risk of poverty in the area of five Slavonian counties. Speaking about the development of cultural infrastructure, the Minister of Culture Nina Obuljen-Koržinek warned that there are still not enough applications and activities in this area for the realization of cultural projects, and that the Ministry expects high co-financing from local communities for the realization of some cultural infrastructure projects.

She added that today a contract will be signed for the realization of the “Vučedol” Archaeological Park project, which is the only strategic project in this financial perspective, but since Slavonia is archaeologically rich, it is important to use the preparation for the next financial perspective to finance infrastructure through EU funds and thus expand the network of museums and archaeological parks.

Subsequently, 105 contracts will be signed for projects related to energy renovation, communal infrastructure, cultural and natural heritage, environmental protection, strengthening rural entrepreneurship and employment, and new investments in kindergartens.

Contracts worth a total of 530 million kuna will be signed with beneficiaries by Deputy Prime Minister Predrag Štromar, Ministers Gabrijela Žalac and Nada Murganić, and Ministers Oleg Butković, Lovro Kuščević, Darko Horvat, Tomislav Ćorić, and Marko Pavić.

The Council for Slavonia, Baranja, and Srijem, chaired by Prime Minister Andrej Plenković, was established on March 8, 2017, as an advisory body in the area of coordinating the implementation and monitoring of the use of European structural and investment funds (ESI), instruments, and programs of the European Union, the European Economic Area, and national sources within the “Slavonia, Baranja, and Srijem Project.”

The project was initiated to secure 2.5 billion euros from EU funds exclusively for projects in the area of five Slavonian counties. Funds for investments in entrepreneurship, agriculture, education, health, research and development, water supply and drainage, cultural and natural heritage, the transport sector, inland waterways, and energy have been secured within existing operational programs and the Rural Development Program in the financial period 2014-2020. To date, Council sessions have been held in Osijek, Požega, Slavonski Brod, and Virovitica.