Croatia: 2014-2020 Partnership
Agreement and Operational
Programmes
V4+ Croatia and Slovenia Expert Level Conference
Budapest, 16-17 June 2014
Key challenges for Croatia
•
•
•
Economic decline
–
Croatian economy has been in recession since 2009
–
real GDP has dropped 12% in the last 5 years
–
low competitiveness and narrow export base
High unemployment
–
rate of unemployment has doubled since 2008 (17.6% in 2013)
–
effect of the crisis especially on youth employment and workers with lower education
Pronounced regional differences
– in terms of income and living standards
– mainly as a consequence of the Homeland war, weak connectivity and low economic
activity
•
Poverty / social exclusion
– a high percentage of the population who live in poverty or at risk of poverty
– 32.3% of total population
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Effect of EU funds on growth
•
Access to nearly 3.2% of GDP per year
–
approx. EUR 1.5 billion per year in EU grants
–
6 times more than in the 2007-2013 period
–
Croatia will need to contribute 1.2% of GDP to the EU budget annually
•
EU transfers – treated as a development budget
•
Results will depend crucially on:
– Adequate administrative capacity to efficiently manage the implementation process
– Design of measures and quality of projects
– Fiscal capacity to accomodate pre- and co-financing needs (at around 1.5% of GDP p.a.)
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Croatia: Multiannual financial framework
Allocations from the EU budget
millions EUR
Cohesion Fund
2 559
Investment in Growth and Jobs
ERDF, ESF
5 837
European transnational cooperation
ETC - ERDF
Total Cohesion Policy
128
8 397
66
* Youth Employment Initiative 2014-2015
Agriculture and rural development (EAFRD)
2 026
280
Maritime and Fisheries (EMFF)
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2014-2020 programming documents
•
Two operational programmes:
– OP Competitiveness and Cohesion – ERDF and Cohesion Fund
–
EUR 6 881 million
– OP Efficient Human Resorces – ESF
–
•
EUR 1 582 million
Agriculture & Fisheries:
– Rural Development Programme – EAFRD
–
EUR 2 026 million
– OP EMFF
–
approx. EUR 280 million
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OP Competitiveness and Cohesion, EUR 6.881 billion
Priority axis
Fund
Indicative
allocation(millions
EUR)
1. Strengthening the economy through application
of research and innovation
ERDF
665
2. Use of ICT
ERDF
300
3. SME competitiveness
ERDF
960
4. Promoting energy efficiency and renewable
energy sources
ERDF
532
5. Environmental protection, climate change
adaptation and sustainability of resources
ERDF + CF
2 200
6. Connectivity and mobility
ERDF + CF
1 361
7. Combating poverty and promoting social
inclusion
ERDF
385
8. Quality and accesibility of education
ERDF
260
TA
ERDF
218
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OP Efficient Human Resources, EUR 1.582 billion
Priority axis
Fund
Indicative
allocation(millions
EUR)
High employment and labour mobility
ESF
448
Social inclusion
ESF
328
Quality education and lifelong learning systems
ESF
526
Smart administration
ESF
136
TA
ESF
80
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PA and programmes – State of play
•
•
Partnership Agreement
–
Proposal has been submitted to the EC on April 22
–
EC observations on the PA expected by mid July
–
Public hearing in early September
–
Formal negotiations with EC in September
–
Adoption of the PA expected in October / November
Programmes
–
Informal negotiations in progress
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Formal submission by July 22 (except OP EMFF)
–
EC observations expected by mid September
–
Formal negotiations Oct – Dec 2014
–
Adoption early 2015
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Croatian priorities in the context of ESIFs
•
All investments under ESIFs must contribute to three national
development goals - determined with respect to national distance to
the headline targets of Europe 2020 strategy:
1. Strengthen the competitiveness of the economy, increase employment and ensure
growth based on the use of own knowledge
2. Reduce poverty and strengthen social inclusion
3. Reduce regional disparities and ensure quality living conditions
•
and be measurable in terms of:
–
Economic growth (GDP)
–
Employment growth (employment rate)
–
Conservation of natural resources (ecological footprint)
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Strengthening the competitiveness of the economy
TOs 1-4: ERDF EUR 2.426 billion + EAFRD EUR 874 million
• ERDF:
–
increased impact and relevance of scientific research in the areas of smart specialization - health, advanced
engineering, environment, biotechnology
–
effective commercialization of research results
–
increased creation of new and improved products through innovation that will contribute to better economic
results
–
increased formation and growth of small businesses
–
modernization of production and diversification of the economy
–
better broadband coverage - backhaul and fast / ultrafast internet access
–
reducing costs in manufacturing industries and the service sector through the promotion of energy efficiency
and renewable energy
–
stimulation of the economy and employment through energy renewal and localized production of energy from
renewable sources
• EAFRD:
–
restructuring and modernization of farms, generational renewal
–
strengthening the competitiveness of primary food producers and better integration in the agri-food chain
–
increased food production and processing, increased competitiveness of the food processing industry
–
increased availability and use of renewable energy sources and by-products in agriculture for bio-economy
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Balanced regional development and better life quality
TOs 5-7: ERDF/CF EUR 3.560 billion + EAFRD EUR 703 million
• ERDF and Cohesion Fund:
–
integrated territorial investments in areas in cities with over 50,000 inhabitants, which will promote the
concept of smart and sustainable cities as engines of regional growth and development
–
investment in transport infrastructure to facilitate connectivity and better access to regions and localy improving territorial cohesion and connection of isolated and difficult to reach areas (e.g. islands)
–
development of intermodal transport services, railway modernization
–
improving water management system - sewerage networks and wastewater treatment
–
investment in waste management systems, increasing waste collection and recycling
–
protection and valorisation of the natural and cultural heritage - in order to increase the tourist offer,
diversification of supply and economic activity in certain locations (integrated destination tourism)
–
flood protection
• EAFRD:
–
improving water management on agricultural land (incl. irrigation)
–
improved soil quality, reduced erosion and preservation of organic ingredients, the transition to organic
agriculture
–
conservation of biodiversity
–
reduction of derelict and unsustainable agricultural and forest areas (forest conservation)
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Reducing poverty
TOs 8-10: ERDF / ESF EUR 2.005 billion + EAFRD EUR 397.8 million
• ERDF and ESF:
–
special measures for disadvantaged and vulnerable groups (children without parental care, elderly, persons
with disabilities, youth, people in or threatened with poverty)
–
activation of long-term unemployed, reducing youth unemployment
–
increased effectiveness and coverage of active labor market policy measures
–
increased quality and efficiency of labor market institutions
–
increased quality and relevance of education (vocational training, lifelong learning, tertiary education, eschools)
–
promotion of self-employment and social enterprises
–
improved access to education and adequate social services for disadvantaged and vulnerable groups
–
strengthening community based social services and the implementation of deinstitutionalization in social
welfare and health care systems
–
integrated investments in degraded areas (mainly war-affected) in order to reduce social and economic
inequalities (including schemes for the promotion of social entrepreneurship, the development of appropriate
community based social services, housing, etc.)
• EAFRD:
–
increased employment opportunities in rural areas
–
increased availability and quality of lifelong learning and vocational training in agriculture and forestry
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What we try to take into account when programming
• Impact on the real economy (businesses)
• Need to support structural reforms - links to the NRP
• Limited financial resources - the need for prioritization
• Consideration of the development needs and growth potential while
respecting the rules of thematic concentration
• An integrated approach and multiplier effect
• Capacity to implement
• Sustainability of investments
• Plans for the fulfillment of ex-ante conditionalities
• Pipeline / project readiness, timeframe for implementation, liquidity
• Cooperation and coordination
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Challenges
• Nationally
–
–
–
–
–
Weak strategic planning, lack of / or uncoordinated national strategic documents
Inadequate administrative capacities
Overlap with 2007–2013 SCFs (both in planning and implementation)
Predominant sectoral approach – ‘silo’ thinking (barrier to integration)
Too many bodies responisible for different funding strands and weak coordination
• Dealing with the EC
–
–
–
Small country – low priority
At odds oppinion of REGIO/EMPL vs. other line DGs - became evident following interservice consultations
Major remarks – lack of prioritisation of investments
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We are interested to know your experience in ...
• Implementation of NGN broadband - bachhaul and access / last mile –
combination of ERDF and EAFRD ?
• Support to (large) enterprises in meeting the requirements of the Industrial
Emissions Directive – requires energy industries, production and processing
of metals, mineral industry, chemical industry, waste management, rearing of
animals, etc. to obtain environment permits - new, less polluting, technologies
instalations ?
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Thank you!
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