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Plenković: Croatia to contribute €1.5bn annually to EU budget

ZAGREB, 12 Dec (Hina) – Croatia will contribute an average of €1.5 billion annually to the EU budget in the next financial framework, reflecting a “strengthened, larger and more prosperous” country, Prime Minister Andrej Plenković said on Friday.

“As we grow, our contribution rises, which makes smart and purposeful use of EU funds an important tool for regional development, agriculture and other sectoral investments,” Plenković said at the opening of the “Economic Dialogue: Investment, Innovation and Industry” conference organised by the Ministry of Economy.

He noted that Croatia’s annual EU contributions have risen from just over €500 million in 2016 to €900 million this year, highlighting the country’s economic progress. The projected €1.5 billion annual contribution for 2028-2034 is based on Croatia’s growth: GDP per capita has risen from around 61%-62% of the EU average in 2016 to an expected 78% at the end of 2025, while total GDP has grown from €47 billion to around €93 billion.

On the forthcoming negotiations over the EU Multiannual Financial Framework for 2028-2034, Plenković said all “available capacities” of Croatian ministries, the government and diplomatic network will be mobilised. He recalled that the European Commission recently proposed a €2,000 billion budget — the largest ever — and noted that although there will be no new Recovery and Resilience Facility, Croatia is expected to have around €5 billion more in EU funding than in the current 2021-2027 period.

He refuted claims that EU funds would “dry up” for Croatia

The prime minister emphasised Croatia’s ability to preserve social cohesion and avoid layoffs during the intertwined crises of the past 5-6 years, citing government interventions including energy subsidies, wage support during the pandemic and tax relief for businesses. He highlighted responsible public finance management and Croatia’s A-level credit rating, which together support employment, export growth, and research and innovation.

At the conference, the government awarded the first 16 grants from the IRI 3 mechanism, providing €191.2 million in non-repayable funds.

A new industrial strategy

Plenković also noted ongoing work on a new industrial strategy, to be published in the first quarter of 2026, and said that 245,000 people currently work in Croatian industry, including 227,000 in manufacturing, with productivity up nearly 5%. Overall employment stands at around 1.75 million, with 75,000 unemployed, an increase of roughly 320,000 jobs compared with ten years ago, alongside rising wages.

He highlighted Croatia’s Schengen and euro area membership and upcoming OECD (Organisation for Economic Co-operation and Development) accession. Plenković met this week in Paris with OECD Secretary-General Mathias Cormann, who will visit Croatia on 30 January to present the second Economic Survey for Croatia, a key step towards OECD membership, confirming Croatia as one of the world’s 40 most advanced and successful economies.

Plenković also stressed the importance of increased investment in the defence sector and energy, the latter being “key in years of crisis”.