Croatia Returned €8.5 Million to the EU: Winemakers Demand Urgent Changes

The weak utilization of the wine envelope at only 18.29 percent was the reason for the Croatian Chamber of Agriculture to inform the public that it is high time to take action. According to the words of the president of the Committee for Winemaking and Viticulture of the Chamber, Josip Vrbanek, at the first meeting of the Commission for the Drafting of the Regulation on Amendments and Supplements to the Regulation on the Implementation of Interventions in the Wine Sector (Strategic Plan of the Common Agricultural Policy of the Republic of Croatia 2023 – 2027), winemakers were informed that in the financial year 2025 (which lasts from October 15, 2024, to October 15, 2025, and has already ended), the utilization of the wine envelope was at the level of 18.29 percent.

– This is a scandalous figure. The wine envelope has an annual budget of €10.41 million, which means we returned €8.56 million to the EU budget. It is also disappointing that last year the utilization was also modest, at the level of 54 percent, and we returned €4.8 million then as well. In total, we have returned €13.36 million in two years. When we calculate how much an entrepreneur must contribute from their own funds, it means we have lost over €25 million in investments in the viticulture and winemaking sector, says Vrbanek.

Long-standing Problems

Although at the last meeting of the Commission it was said that winemakers bear the responsibility for the poor withdrawal of EU funds, the Chamber firmly rejects this and considers it disgraceful, especially since there have been multiple warnings about the problems and the possible significant underutilization of the fund that is desperately needed by all winemakers. If the calls for proposals and processing of applications had been timely and if efforts had been made to approve as many smaller projects as possible that winemakers could implement, the utilization would have been significantly higher. Furthermore, the Chamber emphasizes that significant changes are needed, even changes in the leadership that prepares regulations, calls for proposals, and processes applications. The Committee for Winemaking and Viticulture of the Chamber has tried multiple times to highlight pressing issues, both officially and in the media, but without significant progress.

Nikola Drmić, the sales director at the Krauthaker winery, shares a similar view. He believes that the real problem lies in the regulations and calls for proposals prepared by the Ministry of Agriculture. For example, he explains, preference is given to small wineries over large ones, even though these large ones employ many people and thus contribute to the state budget. However, he admits that there is also a problem with the winemakers themselves who fail to write programs or do not respond in time to apply.

– To be clear, I have nothing against young people; on the contrary, but I think that the Ministry of Agriculture should find a way to equally encourage both us and small winemakers. This is one of the reasons why we are withdrawing EU funds poorly, says Drmić.

Additionally, he states that it should be taken into account that the realization of submitted projects can extend from one to three years, so the funds are withdrawn in phases, especially if it concerns larger projects.

Call for a Meeting

The Chamber believes that it is important to discuss this issue with the highest officials in the Ministry of Agriculture, as well as with other institutions that are dissatisfied with the low utilization of the envelope. Therefore, the Committee for Winemaking and Viticulture of the Croatian Chamber of Agriculture will invite representatives of winemakers from the Croatian Chamber of Economy, the Croatian Chamber of Trades and Crafts, and the Croatian Employers’ Association to a joint meeting to discuss and reach a common position regarding the catastrophic utilization of the Wine Envelope, which has significantly slowed down investment activities in the sector, making it extremely uncompetitive.

– The Committee for Winemaking and Viticulture has submitted a request to the Ministry of Agriculture, Forestry, and Water Management for the exact amount and percentage of disbursed funds from the wine envelope in 2025 (calendar year, as well as financial year from October 15, 2024, to October 15, 2025). Data on the utilization of the wine envelope in other EU countries has also been requested. In the coming days, the Chamber will invite winemakers from other relevant institutions to a joint meeting regarding this important issue, they say at the Chamber.