Croatia wants EU to take account of its particularities in next budget

During ongoing negotiations on the new multiannual financial framework for the 2021-2027 period, Croatia wants the European Union to take account of its particularities as the newest member state so that the European project would not be perceived in Croatia as a brain drain destination but as a strong lever to boost economic growth and living standards.

"There is one aspect of membership, and that is free movement of people, which gives the impression that the EU is literally a space for brain drain, in addition to the otherwise big demographic problem. So in order to avoid the European Union being perceived as a space for brain drain, we need a strong, quick and concrete injection of investment from the European budget to raise the level of development, living standards and GDP growth," Plenkovic told reporters before the start of the second day of the EU summit in Brussels.

On the first day of the summit on Thursday, EU leaders discussed the proposed multiannual financial framework for 2021-2027. The European Commission had unveiled the document in May, proposing a larger budget for 27 member states than the present one which includes the United Kingdom, a net annual contributor of about 12 to 14 billion euros.

In addition to the budget hole that will be left by the UK's departure from the EU next year, new needs have arisen that require more funding from the EU budget, such as migration, common defence and protection of the external borders. That's why the Commission proposed higher contributions from member states and cuts in funding for individual policies, for example a 10 percent cut for cohesion policy and a 15 percent cut for the common agricultural policy.

While wealthier member states are opposed to increasing national contributions into the European budget and are in favour of cuts in cohesion funding, poorer members take the opposite view - they have nothing against higher national contributions, but are against reducing funding for cohesion and agriculture.

"Yesterday I elaborated to my colleagues that in our case (absorption of EU funding) is going well, but not fast enough to be felt in increased growth," Plenkovic said.

He noted that Croatia had been an EU member only five years, and that the share of EU funding in investment in member states was about 8.5 percent on average, while in Croatia it was 80 percent. "That's why this funding is crucial to us."

Plenkovic said that all this year his government had been involved in contacts with the European Commission and other institutions to ensure that, despite the proposed cuts for cohesion and agriculture policies, Croatia received roughly the same amounts for the two policies from the next budget as it had under the present budget.

"We said that account needs to be taken of Croatia's particularities, that it is the newest member state, that it has been using EU funding only for five years, and I think we are getting sympathy," the prime minister said.

He also advocated for Croatia to be granted a longer time frame for using EU funding and for the N+3 rule to be kept in place in Croatia's case, under which funding can be absorbed three years after the conclusion of given contracts. The Commission proposed that this rule be changed to N+2 in the next multiannual financial framework.

Plenkovic said it was not true that Croatia had the lowest growth among new member states. "That's not true, the point is that we have sound growth. ... Previously, growth was generated by borrowing, while we are implementing fiscal consolidation and have healthy growth. That's the point of this growth of 2.9 percent that we have."

Plenkovic says EU understands problem with Bosnia's election law

Croatian Prime Minister Andrej Plenkovic said on Friday that after his statements about Bosnia and Herzegovina (BiH), European Union member states' leaders realised that there was a problem with the BiH election laws and that it should be resolved.

Plenkovic spoke about BiH and the issue of its election law at two European Council meetings, in October and a summit taking place yesterday and today.

"There is now big understanding for this topic among my colleagues," he told Croatian reporters covering his stay in Brussels, adding that "people understand there is a problem and that it should be resolved."

Plenkovic said he would continue to insist on this matter, "in all of BiH's best intentions." "It's very important that what we do, we do in a principled manner. It's nothing personal against any party. We are trying to shed light on a topic which deserves it."

A few days ago, former international community high representatives to BiH Carl Bildt, Paddy Ashdown and Christian Schwarz-Schilling sent a letter to EU High Representative for Foreign Affairs and Security Policy Federica Mogherini and member states' foreign ministers, accusing Croatia of meddling in BiH's internal affairs and saying that Croatian officials contesting the election of Zeljko Komsic as the BiH Presidency's Croat member is unacceptable.

Plenkovic said no one mentioned the letter at the European Council summit.

Commenting a debate in the Croatian parliament on a declaration on the status of Croats in BiH and BiH's European journey, he said, "Let's shed these unnecessary chains and prejudices that one country can't discuss in its representative body the most important foreign policy topic."

He said the government and parliament "have the right to articulate our political stance." "What some actors think, including those in the (ruling) HDZ, is less important. It's important to win the broadest consensus possible for a clear political declaration," he said.

The latest draft of the declaration contains a balanced and clear message and "I think a good stance has been reached," he added.

Plenkovic said that in Dayton, US, where the peace agreement on BiH was concluded in 1995, the current political engineering was the farthest thing on anyone's mind.

"There was good will then to establish peace for coexistence, reconciliation, to move on, and not to have this situation in which one nation, Croats, feel cheated. It's a question of principle... Pretending that nothing happened, sweeping this topic under the rug... that's not normal. There's no way it will happen. At one point we must say: People, wait. That's not good."

Plenkovic said he told his counterparts at the European Council summit that he was speaking as BiH's biggest advocate, "that nobody pushed more for BiH's progress towards the EU, and we will continue to do so."

"We are signalling that we have a problem which can be solved quite simply, so that consensus can be reached on changing the election law," he added.

Text: Hina

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