Deputy Prime Minister Grcic on #VladaUP: Croatia has drawn 105 million euros more than it has paid into EU budget

The Deputy Prime Minister and Minister of Regional Development and EU Funds, Branko Grcic, said on Wednesday that since the beginning of the European integration process Croatia had drawn about 1.6 billion euros and paid about 750 million into the EU budget

"Since 1 July 2013 we have drawn nearly 105 million euros more than we have paid into the EU budget, which is a very good balance," Grcic said in response to questions from Twitter users about the benefits of EU membership, young people emigrating from Croatia, the Greek crisis and Croatia's aspirations to join the euro area.

"There are three aspects that best reflect Croatia's benefits from EU membership: positive economic trends generated through exports, increased foreign investments in Croatia, and grants from EU funds," Grcic said.

Speaking of young people leaving Croatia, he said he would like them to stay and find employment in the country. "Departure of young people is a natural process for each new member. A new single market has opened up where young people seek a chance for a better livelihood. Our task is, and that's what we are doing, to slow that process and ensure that people stay in Croatia and find employment here."

Grcic said that EU funds are a good chance for all Croatian enterprises because they get 35-45 per cent of an investment "as a gift". In this context he underlined the importance of support from banks. "Bankers should be more flexible with regard to EU projects and should be less concerned about profit making. They should be aware that 35-45 per cent of grants are already covered."

Commenting on the situation in Greece, he said that it was the result of uncontrolled borrowing and raising of living standards beyond the country's means, adding that the only way out was to implement reforms "because in politics there are no shortcuts, which this government knows well."

As for Croatia's entry into the euro area, Grcic said: "In my estimate, Croatia will join the euro area in five to seven years' time. Before that we have to put certain things in order, e.g. reduce the public debt and deficit. It's a long process."

(Text: Hina)

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