The Deputy Prime Minister and Minister of Regional Development and EU Funds, Branko Grcic, said in Zagreb on Wednesday that this year Croatia had made huge progress in the use of European Union funds, but noted that the next year, when Croatia joins the EU, would be full of challenges in that regard.
"This year we have really made huge progress in using EU funds, advancing from about 37% at the start of the year to 60% of the total allocation now at the end of 2012. Basically, for the first time since the launch of the IPA program, we have managed to sign contracts for te entire annual allocation," Grcic said.
In 2011, Croatia signed contracts worth EUR 250 million, or 37.4% of the allocated funds, and EUR 127 million was paid out from the IPA pre-accession fund, or 19% of the allocated funds. This year, contracts signed were worth EUR 398 million, or 59.55% of the allocated funds, and EUR 220 million was paid out, or 32.9% of the allocated funds.
Grcic expressed hope that Croatia would be equally successful next year, stressing that from now on it would have to focus on structural funds. "It will take a lot of effort to absorb EUR 450 million next year and EUR 1.1 billion each year after that. We are working intensely to prepare ourselves as best we can."
Grcic explained that the work included building the administrative capacity and project preparation. About 800 people are currently working on this and their number should increase to about 1,000 by the end of March.
Grcic said that his ministry had supported the preparation of 32 projects, estimated at HRK 4.3 billion in total, as part of the program for the preparation of projects for EU funding. As part of the project Integral Development of the Local Community, 74 infrastructure projects have been financed and completed.
Grcic said that in the coming year as many public projects as possible would be financially supported by EU funds. He said that through all generations of pre-accession funds Croatia had had access to about a billion euros, of which it had absorbed about 67%.