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Croatia can expect 20 billion Euro from EU to recover from Covid-19

By  Jun 14, 2020

Croatia can expect more than 20 billion Euros to recover from the Covid-19 pandemic, State Secretary of the Ministry of Foreign and European Affairs, Nikolina Brnjac, commented in an interview with Sunday's Vecernji List.

State Secretary Brnjac empathised that the proposal of the European Commission's Recovery Package consists of two parts: a modified Multiannual Financial Framework (MFF) of EUR 1,100 billion and the Recovery Instrument (Next Generation EU) of EUR 750 billion, of which EUR 500 billion is a grant and 250 billion in soft loans. The recovery instrument will be financed with money that the EC will borrow from the financial markets based on the EU credit rating, and the repayment of these loans would begin in 2028 and last until 2058.

"According to preliminary calculations, Croatia can expect a little more than 20 billion euros from this package. However, the entire package must be accepted by all member states at the level of the European Council," Brnjac said.

She also confirmed that the government had collected extensive documentation on the damage caused by the earthquake in Zagreb and applied for financial support from the Solidarity Fund. The estimated value of the total direct damage is approximately 86 billion Kuna, or more than 11.5 billion euros, according to the World Bank methodology.

"We are convinced that it is necessary to use European funds for the reconstruction of Zagreb precisely because we can count on grants, not only from the Solidarity Fund, but also from other programs that will be available through the new MFF. Our goal is not to put children in debt, but responsibly address priorities through grants and soft loans,” she said.

She assessed that the pandemic in some way "kidnapped" half of Croatia's presidency of the EU Council, which is why many planned topics were overshadowed by the global crisis, but she believes that Croatia reacted excellently in completely unforeseen and unexpected conditions.

 

The Voice of Dubrovnik

THE VOICE OF DUBROVNIK


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