The European Union General Affairs and External Relations Council in Brussels on Monday adopted a draft financial package for the first two years of Croatia's EU membership. The package has been prepared by the European Commission on the working assumption that Croatia will join the bloc in January 2012.
In the first two years of EU membership, namely in 2012 and 2013, a total of EUR 3.568 billion of EU budgetary funds will be allocated to Croatia. Croatia will be able to access most of this amount through Cohesion and structural funds and in the first two years it will be able to draw a total of EUR 2.205 billion. To be granted this amount, Zagreb must prepare quality projects.
Each project is financed from European funds in the amount of 85 percent at the most, while the rest is financed by a member state. The Cohesion Fund is a structural instrument for the financing of major EU infrastructure projects from the transport and environmental protection sectors.
Eligible are the least prosperous member states of the Union whose gross national product (GNP) per capita is below 90% of the EU-average. Two structural funds - the European Social Fund and the Regional Development Fund - finance development projects which help narrow the gap between developed and less developed parts of the EU.
After the Cohesion and structural funds, the third most important source of financing are funds allocated for direct payments to farmers, funds for rural development and fisheries. A total of EUR 373 million has been allocated for direct payments to farmers, and during its first year of EU membership, Croatia will be able to draw 25 percent of the total amount, 30 percent in the second and 35 percent in the third year, after which the amount will be increased by 10 percent annually until it reaches the total sum over the period of 10 years.
When it comes to rural development, Croatia is expected to withdraw the total amount, namely EUR 352 million, as early as 2014. A total of EUR 120 million has been allocated for Croatia's preparations to enter the Schengen area.
According to Commission estimates, in the first year of its EU membership Croatia is expected to pay EUR 609 million into the EU budget and EUR 647 million in 2013.
Source: Hina