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Croatia’s recovery and resilience – Supported projects: Reforms

Disclaimer: This page exclusively serves information purposes and is not an exhaustive database of projects funded by the Recovery and Resilience Facility. Notably, the map provides a snapshot of projects based on the current status of their implementation. It does not reflect the distribution of the projects funded by the Recovery and Resilience Facility across the different areas within Croatia. The map will be regularly updated to include additional projects and information. The showcase of the projects in this page is without prejudice to any future assessment by the Commission in the context of the verification of the satisfactory fulfilment of milestones and targets pursuant to Regulation (EU) 2021/241 of the European Parliament and of the Council establishing the Recovery and Resilience Facility.

The measure references mentioned below are those contained in the Annex to the Council Implementing Decision approving the Croatian Recovery and Resilience Plan and allow for easy identification of the measures

For more info on the projects, please contact the Commission’s representation: Judita Cuculić Župa Judita [dot] CUCULIC-ZUPAatec [dot] europa [dot] eu (Judita[dot]CUCULIC-ZUPA[at]ec[dot]europa[dot]eu) and Hana Huzjak Hana [dot] HUZJAKatec [dot] europa [dot] eu (Hana[dot]HUZJAK[at]ec[dot]europa[dot]eu)

 

Decarbonising the energy sector

(reference C1.2. R1 in the Croatian Recovery and Resilience Plan)

The objective of the reform is to facilitate the decarbonisation of the energy and transport sectors and to support the national contribution to the Union renewable energy target.

This reform is supported by major investments including the award of 75 contracts to small, medium-sized and large enterprises at the end of 2021, in order to increase the energy efficiency in industrial production processes of energy-intensive manufacturing industry and increase the use of renewable sources. In practice, the investments will improve production processes in manufacturing industries in order to reduce the energy consumption by a minimum 20%-40%, depending on the type of investment.

By focusing on the increase of energy efficiency measures and the use of renewable energy sources in small, medium-sized and large enterprises, the implementation of this measure will contribute to the decarbonisation of the Croatian economy and to the objectives of the green transition. The reform shall be completed by 31 December 2023.

More information can be found on the Ministry of Economy and Sustainable Development webpage here or on social media here.

RRF Project Croatia Decarbonising the energy sector

Improving the business environment

(reference C1.1.1.R1 in the Croatian Recovery and Resilience Plan)

The ongoing reform of the business environment focuses on improving regulatory conditions for businesses in Croatia and continuing administrative and fiscal burden relief. Under this measure, Croatia is implementing several national action plans which identify undue burdens businesses face in meeting their regulatory obligations, alleviating these costs by reducing fees and simplifying procedures.

Croatia already reduced or abolished 50 non-tax and parafiscal charges, bringing direct cost relief to the private sector. This is part of a broad-based reform to improve business regulations, which includes the implementation of nearly 400 measures in diverse areas such as taxation, fisheries, tourism and hospitality, customs duties and judiciary.

According to the Croatian Recovery and Resilience Plan, further cost relief for the business sector in excess of EUR 250 million is to be delivered by the end of 2025, by optimising and digitalising administrative processes identified as most burdensome.

More information can be found on the Ministry of Economy and Sustainable Development webpage here

Adoption of the Digital Croatia Strategy 2032

(reference C2.3.R1 in the Croatian Recovery and Resilience Plan)

The objective of the Digital Croatia Strategy 2032 is to steer the digital transformation of Croatia’s society and economy for the next decade. Based on the objectives and targets of the Europe’s digital decade, the strategy sets the frame for national, EU and private investments in the digital transition in Croatia and defines strategic objectives in the digital transition of the economy, the digitalisation of the public administration and justice, the digital connectivity (broadband electronic communications networks), and the development of digital skills and jobs.

The Strategy was adopted by the national Parliament in December 2022. One of the aims of the Strategy is to increase the share of the ICT sector in Croatia from the current 4.5% of national GDP to 13% by 2032.

More information can be found at the links below:

RRF Project Croatia Adoption of the Digital Croatia Strategy 2032
Copyright: Croatian Government

Increasing the adequacy and transparency of social benefits

(reference C4.3.R1 in the Croatian Recovery and Resilience Plan)

The objective of this reform is to increase the adequacy of the main social benefits targeted at the most vulnerable groups of society and to contribute to the reduction of inequalities. The reform should also reduce the administrative burden and increase the transparency of the system. It will allow faster and more efficient provision of benefits by merging existing social benefits into a single benefit and will achieve better coverage and fairness by improving eligibility and adequacy in applying the benefits. The reform requires changes to the legal framework, some of which, like the new Social Welfare act, have already been adopted.

The adoption of the National Plan against Poverty and Social Exclusion 2021-2027 spearheaded the reform by defining a target to reduce the at-risk-of-poverty rate to less than 15% as well as a strategy to ensure conditions that effectively reduce poverty and social exclusion and improve the daily lives of people at risk of poverty, especially for those experiencing severe material deprivation.

The reform shall be completed by the end of 2024 by further increasing the guaranteed minimum benefit and ensuring its full integration with other social benefits, with a particular focus on people suffering from persistent poverty, by increasing the effectiveness of evaluation and monitoring and by introducing indexation as a standard feature of future benefits.  

More information can be found on the project webpage here.

RRF Croatia Increasing the adequacy and transparency of social benefits
Copyright: Croatian Government

Reform of the education system

(reference C3.1.R1 in the Croatian Recovery and Resilience Plan)

This reform addresses the challenges at all levels of education – early childhood education and care, primary, secondary, as well as adult education. It will improve access to early childhood education and care, increase the quality of teaching and learning outcomes in primary schools, improve the labour-market relevance of secondary education and increase the quality and relevance of adult education.

This reform will be supported by large investments into kindergartens and schools. By December 2022, over 250 kindergarten projects were approved for financing for a total investment of EUR 215 million by end-June 2026. A call for investments in primary and secondary schools is expected shortly.

In parallel with investments, the regulatory prerequisites for the implementation of the reform must be ensured. Therefore, amendments to the law on ECEC were adopted, new law on adult education was adopted, comprehensive analysis of secondary education needs was prepared and published and law on primary and secondary education is being revised.

More information can be found on the official journal of Croatia here and on the project webpage at the following links:

RRF project Croatia Reform of the education system
Copyright: Croatian Government

Fight against corruption

(reference C2.6. R1 in the Croatian Recovery and Resilience Plan)

Measures included in the plan cover a comprehensive set of reforms and investments to prevent, detect and address corruption. This reform aims to improve coordination and cooperation of the authorities involved in the implementation of national anti-corruption policy documents through digitalisation.

As part of this reform, a new anti-corruption strategy for 2021-2030 was adopted by the Parliament in October 2021. It aims to strengthen the institutional and normative framework for the fight against corruption, enhance the transparency and openness of the work of public authorities, strengthen integrity and conflict of interest management systems, enhance anti-corruption potential in the public procurement system and raise public awareness of the harm brought about by corruption, the need to report irregularities and enhance transparency.

Moreover, in line with the new anti-corruption strategy for 2021-2030, a new Law on the Prevention of Conflict of Interest was adopted by the Croatian Parliament in December 2021. The objective is to extend the scope of the Act to cover companies owned by local and regional government units and companies owned by such companies, make asset declarations mandatory, and remedy any potential conflict of interest. A new Act on the Protection of Reporters of Irregularities (Whistleblower’s Act) was adopted by the Parliament in April 2022. The Act guarantees whistleblower protection regardless of the reporting channel and stipulates that the persons who have reported irregularities anonymously, but whose identity is subsequently established, have the same status as those who have voluntarily revealed their identity. Also, by amending the Act of the Government, obligations to special advisers of ministers to sign the Declaration of Interests and Impartiality were introduced and immunity for the members of the Government regarding all corrupt criminal offenses was abolished.

More information can be found at the following links:

RRF project Croatia Fight against corruption
Copyright: Croatian Government