The European Commission has presented a proposal for the new Multiannual Financial Framework for 2028–2034, worth nearly two trillion euros. Our efforts and contributions to the overall process will aim, among other things, at achieving an effective and fair budget capable of providing an adequate response to new challenges, says Nataša Mikuš Žigman, Minister of Regional Development and EU Funds, for Diplomacy&Commerce. With the new Law on Islands, the Government aims to harmonize and improve certain existing provisions, as well as introduce new ones. The Minister notes that over the past 10 years, more than 4 billion euros have been invested in Croatian islands.
- The successful use of available EU funds and their strategic investment in structural projects, negotiations on the new Multiannual Financial Framework of the European Union, strengthening the system’s capacities, and ensuring balanced growth and development across all parts of Croatia have been your priorities since you took office as Minister. Where do you see the greatest challenges among these areas?
I would rather call them opportunities that we must use wisely to further promote the growth and development of all parts of Croatia, so that we continue to be recognized as a positive example of cohesion policy and EU fund investment at the level of the European Union. That is why we have focused on accelerating the pace of contracting and implementation EU programmes in Croatia to fully utilize the currently available funds by the end of 2029. In addition, it is important for us to continuously work on strengthening capacities of the EU funds management system and maintaining good cooperation with local and regional authorities in planning and implementing numerous development projects. Furthermore, ahead of us are presumably long and complex negotiations on the new Multiannual Financial Framework of the European Union for the period after 2027. In these negotiations, Croatia will continue to advocate for a strong cohesion policy, since our experience has shown that structural funds — as one of the main benefits of our EU membership — are a driving force of development, creating the conditions for balanced regional development, economic growth, and an improved standard of living for Croatian citizens. Therefore, one of our main tasks, alongside dialogue with county prefects, mayors, municipal heads, business representatives, and social partners, will be to actively participate in shaping the multiannual financial package. However, what will certainly be the key to Croatia’s continued success is focusing not only on absorbing the funds available to us, but on spending them responsibly and transparently, and investing them in sustainable projects that generate growth and create added value. Ultimately, this should bring us closer to our goal of joining the group of the most developed EU member states.
2. The European Commission has presented its proposal for the new Multiannual Financial Framework for 2028–2034, worth nearly two trillion euros. Negotiations are expected to last around two years. What can Croatia expect? During negotiations, what aspects are taken into account and which factors influence the final decision?
The European Commission published the draft for the new Multiannual Financial Framework for the 2028–2034 period in July this year. Following that, the negotiations on the budget were taken over by the Council of the European Union, or, more precisely, by the member states, in consultation with the European Parliament and other stakeholders at the EU level, such as the Committee of the Regions. From the very beginning, Croatia has been participating in the working groups in Brussels, where negotiations and decisions on the Multiannual Financial Framework are taking place. The final decision on the future long-term EU budget will be adopted unanimously by the Council of the EU, with the prior consent of the European Parliament. Our advantage lies in having an excellent and experienced team, both in Croatia and in Brussels, who will represent our interests in the best possible way. For Croatia, this is the second time that it is participating in the process of negotiating the EU’s multiannual budget on an equal footing with other member states. We will proactively use the knowledge and experience we have gained to directly contribute to shaping European policies that have a direct impact on the lives of our citizens. Given that the adoption of the Multiannual Financial Framework for the European Union is usually a demanding and lengthy process that depends on numerous factors– especially now, as the Union faces many new challenges that have influenced changes in the structure of the MFF – it is difficult to predict the outcome at this stage. In any case, our efforts and contributions throughout the process will aim toward achieving an efficient and fair budget that can adequately respond to new challenges, while at the same time ensuring the continuity and stability of traditional policies, such as cohesion policy and the common agricultural policy.
3. The Government has submitted a new Islands Act to parliamentary procedure, aiming to harmonize and improve certain existing provisions and introduce new ones, with the goal of improving the quality of life of island residents and promoting the green transition of the islands. What would you highlight as the most important new elements?
Our island legislation has been in place for 25 years, and we are proud to be among the few European countries that have a dedicated legislative framework for islands. In doing so, we send a clear message about how strategically important our islands are. Over the past 10 years, more than 4 billion euros have been invested in Croatian islands, and numerous development projects have contributed to improving economic activity and the living standards of island residents. In addition, Croatia has used the regulatory possibilities and secured 150 million euros from EU funds exclusively for investments in islands. With the new Act, based on years of experience in implementing development and island policies, our goal was to further direct efforts and available resources toward strengthening the sustainability of the islands – that is, to focus investments on the areas that matter most to islanders and that contribute to their continued growth and development. Thus, in addition to strengthening measures related to island infrastructure development, maritime and road transport, water supply, support for island entrepreneurship and civil society, and the promotion of authentic island products, the new Act places special emphasis on the green and energy transition, improving healthcare on the islands, and waste management. We will also provide for the possibility of co-financing the costs of expensive and logistically challenging waste management projects on the islands, as well as the projects in the field of green and energy transition for island entrepreneurs, which are key to increasing their competitiveness.
4. The international cooperation of your Ministry is very active. You recently met with the Ambassador of the Kingdom of Norway, H.E. Arne Sannes Bjørnstad, and the Ambassador of the Swiss Confederation, H.E. Beatrice Schaer. What were the main topics of those meetings, and how important is international cooperation for Croatia, considering that we are also an EU member state?
In addition to the funds available to us through the European Union’s Multiannual Financial Framework and the National Recovery and Resilience Plan, part of our activities is also connected to the implementation of bilateral programmes — the European Economic Area (EEA) Financial Mechanism, the Norwegian Financial Mechanism, and the Swiss-Croatian Cooperation Programme. These are programmes that Croatia uses as a complement to EU funds, where there is a common interest with the countries of the European Economic Area, and which involve close cooperation between our Ministry and the donor countries as well as their embassies in Croatia. The implementation of these mechanisms that are aimed at balanced regional development and investments to improve the living standards of Croatian citizens, was precisely the focus of the bilateral meetings with Ambassador Bjørnstad and Ambassador Schaer. Moreover, in mid-September, during the official visit of Swiss President Karin Keller-Sutter to Croatia, we signed the Agreement for the Water Supply and Sewerage Programme under the Second Swiss Contribution, which provides 23 million Swiss francs to improve water and wastewater infrastructure and systems in the Gorski kotar area. Earlier, we had already signed agreements for the Research Programme, worth 8 million Swiss francs, and for the Civil Society and Transparency Programme, worth 7.6 million Swiss francs, while the signing of an agreement for palliative care is still ahead of us. A total of 45.7 million Swiss francs has been made available to us through the Second Swiss Contribution, thereby continuing the excellent practice from the previous contribution, under which 11 projects worth more than 42 million Swiss francs were successfully implemented. Among them were investments in water supply and wastewater systems in Gorski kotar, the promotion of excellence in education, mine clearance in Sisak- Moslavina County, and support for the participation of Croatian small and medium-sized enterprises in international research and development projects.
On the other hand, in September, we also signed Memoranda of Understanding on the implementation of the European Economic Area (EEA) Financial Mechanism and the Norwegian Financial Mechanism for the period up to 2028 with H.E. Helga Hauksdóttir, Ambassador of Iceland to the Republic of Croatia, and H.E. Arne Sannes Bjørnstad, Ambassador of the Kingdom of Norway to Croatia, respectively. Under these Memoranda, more than 111 million euros have been made available for investments in the judiciary, local development, the green transition, and innovation in the fields of green and blue business. During the previous financial period, a wide range of projects worth over 103 million euros were successfully implemented in Croatia through these mechanisms, including four Regional Science Centres, a major geothermal drilling project in Bjelovar, and the new court building in Split, which in itself clearly demonstrates how important and beneficial such partnerships are for Croatia’s development.
5. Regional cooperation is also very important for us. There are currently many active projects with Bosnia and Herzegovina, Montenegro, Serbia, and Hungary. Which projects would you highlight, and how significant are they for the region– and consequently, for Croatia?
The Republic of Croatia takes part in 13 European Territorial Cooperation programmes, which contribute to increasing the international competitiveness of Croatian regions and reducing social and economic disparities. Through these programmes, challenges that transcend national borders are jointly addressed, ensuring synergy between local and regional policies and the European Union’s cohesion policy. Thanks to cross-border cooperation, for example, Osijek will soon have a Mosquito Control Centre, the Faculty of Electrical Engineering and Computing (FER) will implement a project aimed at improving the competitiveness of agriculture, while in the Split-Dalmatia County investments will continue in strengthening the organisational and technical capacities of emergency services in fire protection and rescue. Across the border, the University Clinical Hospital in Mostar will receive a valuable linear accelerator, while projects are also enhancing entrepreneurship and innovation capacities, supporting the development of the gaming industry, and investing in energy efficiency, the circular economy, and better access to emergency services in border areas. However, it is important to emphasise that these are not only projects that foster development and improve the quality of life for citizens in border regions, but also an excellent tool for networking, exchanging experiences, and acquiring new knowledge. This is valuable for us as an EU member state participating in programmes with other member states, as well as with countries such as Bosnia and Herzegovina, Montenegro, and Serbia, which are candidates for EU membership.