Plenković: The first funds from the European recovery fund will only arrive next year

– The idea is to achieve both, to enter Schengen and the eurozone, by the end of this government’s term, that is, by the second half of 2024 – said Plenković in an interview with Politico during his visit to Brussels on Friday, adding that this is a difficult task, but also a reasonable deadline.

The European Commission announced back in 2019 that Croatia had met all technical conditions for entering the Schengen area, but this still needs to be accepted by the member states, which Romania and Bulgaria have been waiting for years. Croatia entered the European Exchange Rate Mechanism (ERM II) in mid-2020, which is a crucial step towards membership in the eurozone. 

The Prime Minister emphasized that due to the coronavirus crisis, it can be expected that eurozone members will continue to suspend their fiscal discipline rules, but that countries wishing to join this economic space cannot rely on such ‘self-help tricks’. He expressed regret that Croatia had to abandon the consolidation and stabilization of public finances due to the economic damage caused by the virus. 

He concluded that his government will have two goals in the future: to utilize the European recovery fund, the European budget, and private investments to generate growth, and to return to the framework from 2017 to 2019 when a surplus in the state budget was achieved.

The Prime Minister believes that Croatia will only receive the first funds from the European recovery fund in 2022. 

– The process is complicated. When it is not about helicopter money, it is very difficult and complex. You need a plan, a project, confirmation, a tender, implementation, documentation. If this happens faster, we will gladly spend those funds, but if it is ‘realistic’, the money will only arrive next year – concluded the Prime Minister.

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