The government has adopted the draft National Recovery and Resilience Plan worth 47 billion kuna for structural reforms and investments. There is a possibility to secure additional funds with favorable interest rates.
The government predicts that the positive effects of the plan would be visible this year, thus increasing the planned economic growth rate.
About two-thirds of the funds from the National Plan have been earmarked for recovery from the crisis, and one-third for future greater resilience, with 54% earmarked for investment into the economy.
“This is a document that will enable us to use 47 billion kuna for structural reforms and investments from 2021 to 2026. We have the possibility to request additional funds with additional reforms and additional projects amounting to 3.6 billion euros. The components are first the economy, second public administration, the judiciary and state property, third education, science and research, fourth the work market and social protection, fifth healthcare and sixth reconstruction of buildings,” said Prime Minister Andrej Plenković.
The Prime Minister added that Croatia will be more digitally developed and ecologically greener.
“I propose that all those who are interested to study this document well, to eventually provide criticism and comments. The document will be on the web and the entire public will have an insight into it,” noted the Prime Minister.
The Convergence Program, adopted by the government envisions increased growth rates over the next three years as well, with European money expected to increase the rate by one percentage point next year. Already this year, the growth of the share of public debt in the GDP is expected to stop.
“Very quickly, with growth of the GDP, solid budgetary revenues, and control of expenditures, we want to return to the path of quicker reduction of public debt. We will do everything to achieve that goal,” said Prime Minister Plenković.
As expected, the parliamentary opposition also reacted critically to the National Recovery Plan, dissatisfied primarily with the fact that they will only have an insight into the complete draft plan from today.
Siniša Hajdaš Dončić from the Social Democratic Party said that they hope the emphasis in the document is on certain newer more innovative industries.
“I agree with entrepreneurs who warn that certain select companies who are well networked with certain structures may eventually have benefit from this plan, but others no,” said Stjepo Bartulica from the Homeland Movement.
The government will now send the draft plan for final approval to the European Commission.