European Promotion of Cohesion and Transition: Nine Billion Euros Available to Us

In the context of the current financial framework of the European Union, the most important policy for counties is the Cohesion Policy, which places a strong emphasis on green, digital, and just transition, directing most of the funds precisely towards addressing the challenges of various areas of the EU.

In 2023, which marks three significant anniversaries – 30 years of local democracy in Croatia, 20 years of the Croatian County Association’s operation, and 10 years of the Republic of Croatia’s membership in the European Union, we must take a moment to reflect on the importance of attracting funds from European sources for the development of Croatian counties.

Since the inception of local democracy in Croatia, which is a small but very geographically and demographically diverse country, with unevenly developed potentials of its regions, what we advocate for is balanced regional development. For us, this means equalizing opportunities for all our citizens, retaining the population in local communities, creating conditions for living and working, prosperity, and advancement.

Cohesion Funds

In the past decade, we have built kindergartens, hospitals, energetically renovated buildings, financed teaching assistants, ensured nutrition in schools, provided food for the most needy, invested in and completed large infrastructure projects, all co-financed or fully financed by European funds. For example, in the previous programming period of the EU (2014 – 2020), the Agricultural-Entrepreneurial Incubator in Brodski Stupnik was co-financed, which improved the availability of entrepreneurial-business infrastructure for small and medium-sized enterprises in the Brod-Posavina County for their easier sustainable growth and development. The goal is to attract investments, create opportunities for opening new jobs, and increase the number of products and services by building and equipping modern infrastructure to strengthen entrepreneurial capacities in Brodski Stupnik.

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In the context of the current EU financial framework (2021 – 2027), the most important policy for counties is the Cohesion Policy, which places a strong emphasis on green, digital, and just transition, directing most of the funds precisely towards addressing the challenges of various areas of the EU. Croatia has nine billion euros of cohesion funds available in this programming period to promote the economic, social, and territorial cohesion of its regions and green and digital transition.

The largest portion of cohesion funds is intended for achieving the goals of green transition and the shift to a low-carbon economy (2.56 billion euros: 39% from the Cohesion Fund and 31% from the European Regional Development Fund), which will help improve energy efficiency, increase the share of renewable energy sources in energy production (up to 60% in 2023), strengthen the circular economy, resilience to climate change, and biodiversity (climate change and biodiversity – 650 million euros).

Digital solutions are one of the most important factors in the fight against climate change and the realization of green transition. Digital transformation is based on three pillars: technology in the interest of citizens, a fair digital economy that promotes market competition, and an open, democratic, and sustainable society. Through these three pillars, the EU provides citizens, businesses, government administration, and local and regional self-governments the opportunity to participate in digital transformation and its management.

Five Investment Priorities

Regional development and cohesion in the period 2021 – 2027 are focused on five investment priorities in which the EU will achieve the best results. These are: a smarter Europe (focusing on innovation, digitalization, economic transformation, and support for small and medium-sized enterprises), a greener Europe without carbon (implementing the Paris Agreement and investing in energy transition, renewable energy sources, and combating climate change), a more connected Europe (equipped with strategic transport and digital networks), a more social Europe (implementing the European Pillar of Social Rights and supporting quality employment, education, skills acquisition, social inclusion, and equal access to healthcare), and a Europe closer to citizens (supporting locally-led strategies and sustainable urban development throughout the European Union).

All development projects must fit into some of the specific interventions and measures that open new opportunities for our counties in the new EU financial perspective 2021 – 2027.