fondos multilaterales en croacia 2013

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Fondos multilaterales en Croacia

Otros documentos

Oficina Económica y Comercial

de la Embajada de España en Zagreb

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Este estudio ha sido realizado por Aránzazu Gó-mez Gil bajo la supervisión de la Oficina Económi-ca y Comercial de la Embajada de España en Za-greb

Abril 2013

Otros documentos

Fondos Multilaterales en Croacia

FONDOS MULTILATERALES EN CROACIA

Oficina Económica y Comercial de la Embajada de España en Zagreb 3333

FONDOS MULTILATERALEFONDOS MULTILATERALEFONDOS MULTILATERALEFONDOS MULTILATERALES EN CROACIAS EN CROACIAS EN CROACIAS EN CROACIA

ÍNDICE

Resumen Ejecutivo ……………………………………………………….. 4

1. Unión Europea …………………………………………………………. 5

2. Banco Europeo de Reconstrucción y Desarrollo …………………. 14

3. Banco Mundial ………………………………………………………… 17

4. Banco Europeo de Inversiones ……………………………………….. 18

Bibliografía y contactos …………………………………………………… 20

Anexos ……………………………………………………………………. 22



RESUMEN EJECUTIVO

En Croacia actúan cuatro organismos multilaterales al mismo tiempo. El denominador común de la actividad de estas instituciones es apoyar la transición de ciertos países a un siste-ma democrático y a una economía de mercado mediante la promoción del crecimiento econó-mico y de la estabilidad.

Unión Europea (UE)Unión Europea (UE)Unión Europea (UE)Unión Europea (UE)

Ha financiado proyectos en Croacia mediante los fondos IPA desde 2007. Croacia dejará de percibir estos fondos a partir de su entrada en la UE, en Julio de 2013. Desde este momento, la UE financiará a Croacia a través de los Fondos Estructurales y de Cohesión.

� IPA 2013: 94,8 millones de EUR (hasta Julio 2013) � Fondos Estructurales y de Cohesión:

� 2013: 374 millones de EUR � 2014 – 2020 (previsión): 9.956 millones de EUR

Banco Europeo para la Reconstrucción y el Desarrollo (BERD)Banco Europeo para la Reconstrucción y el Desarrollo (BERD)Banco Europeo para la Reconstrucción y el Desarrollo (BERD)Banco Europeo para la Reconstrucción y el Desarrollo (BERD)

El volumen de negocio en 2012 fue de 205 millones de EUR (146 en el sector privado y 59 en el público). A fecha de Abril de 2012 había financiado: 138 proyectos, con un valor de 6.900 millones de EUR.

Banco Mundial (BM)Banco Mundial (BM)Banco Mundial (BM)Banco Mundial (BM)

La estrategia de alianza 2009-2013 comprende 1.052 millones de USD en préstamos. Actualmente 12 proyectos están en marcha y está listo el borra-dor para la nueva estrategia 2014-17.

Banco Europeo de Inversiones (BEI)Banco Europeo de Inversiones (BEI)Banco Europeo de Inversiones (BEI)Banco Europeo de Inversiones (BEI)

En 2012 ha financiado proyectos por valor de 300 millones de EUR. Su finan-ciación se ha destinado sobre todo a apoyar a las PYME y a los gobiernos lo-cales. En 2013 ya se ha concedido financiación a un proyecto por 250 millo-nes de EUR.

En el presente documento se hará referencia a cada una de estas instituciones por sepa-rado, así como a sus proyectos en Croacia.



1. Unión Europea 1. Unión Europea 1. Unión Europea 1. Unión Europea

Como está establecido, Croacia recibirá fondos IPA (Instrumentos de Pre-Adhesión) has-ta su efectiva entrada en la UE, es decir, hasta Julio de 2013. A partir de esta fecha, Croacia re-cibirá los llamados Fondos Estructurales y de Cohesión.

Hasta la actualidad, la asistencia financiera a Croacia por parte de la UE, a través de los fondos IPA, puede resumirse en la siguiente tabla:

Durante el periodo 2007 – 2011 los fondos IPA (Instrumentos de Pre-Adhesión) se mate-rializaron en Croacia a través de tres programas plurianuales:

- Environmental Operational Programme (EOPEnvironmental Operational Programme (EOPEnvironmental Operational Programme (EOPEnvironmental Operational Programme (EOP). Programa destinado a la inversión en proyectos de aguas, en la implantación de las regulaciones de la UE para el medio am-biente, la provisión de agua potable y la gestión del gasto de agua.

- Transportation Operational Programme (TOP).Transportation Operational Programme (TOP).Transportation Operational Programme (TOP).Transportation Operational Programme (TOP). Programa para invertir en proyectos pa-

ra la modernización de las autopistas a lo largo de los corredores paneuropeos X y V, que son parte de la Trans-European Transport Networks (TEN T).

- Regional ComRegional ComRegional ComRegional Competitiveness Operational Programme (RCOP).petitiveness Operational Programme (RCOP).petitiveness Operational Programme (RCOP).petitiveness Operational Programme (RCOP). Su objetivo es alcanzar

una mayor competitividad y mayor desarrollo regional mediante la mejora de la competi-tividad de las PYME y mejorando las condiciones económicas en las zonas menos des-arrolladas de Croacia.

� Año inicial de recepción de fondos IPA: 2007

� Presupuesto fondos IPA para 2012: 159,5 millones EUR

� Presupuesto fondos IPA para 2013: 94,8 millones EUR

� Croacia ha tenido acceso a los cinco componentes de los IPA mientras ha si-

do un país candidato.

� El Programa Nacional de los IPA en Croacia se ha centrado sobretodo en

tres aspectos:

� Creación de instituciones. El objetivo era fortalecer los criterios polí-

ticos de Copenhague, así como mejorar la capacidad administrativa y

judicial y alinearse con la legislación comunitaria.

� Promoción del desarrollo económico y social

� Otras medidas de transición.



Croacia recibe financiación de la UE desde el 2002. El estatus de ““““país candidatopaís candidatopaís candidatopaís candidato”””” lo tiene desde 2004 y en 2007 empezó a recibir financiación de los Instrumento Pre-Adhesión (IPA), cuya asistencia se basa en la Planificación Multianual Indicativa.

La asistencia de los IPA para países candidatos se distribuye en cinco componentes:

La asistencia IPA en Croacia se aplica de forma descentralizada lo que significa que la decisión de los proyectos para financiar corresponde a las instituciones croatas correspondien-tes, limitándose la Delegación de la UE a una auditoría ex ante y a una auditoria ex post.

Los fondos IPA en Croacia, es decir, la asistencia financiera que ha recibido de la UE en el periodo 2007 – 2012, han ascendido a un total de 909,2 millones de EUR. Para el año 2013 (hasta Junio de 2013, incluido) se han asignado 94,8 millones de EUR. Para más información: consultar ANEXO I.

Tabla Tabla Tabla Tabla 1111 ---- Fondos IPA adjudicados a Croacia Fondos IPA adjudicados a Croacia Fondos IPA adjudicados a Croacia Fondos IPA adjudicados a Croacia

IPA por componente

(millones EUR) 2007 2008 2009 2010 2011 2012 2013 Total

Componente I 49,6 45,4 45,6 39,5 39,9 40,0 17,4 277,4

Componente II 9,7 14,7 15,9 16,2 16,5 16,9 9,7 99,6

Componente III 45,0 47,6 49,7 56,8 58,2 59,3 31,0 347,6

Componente IV 11,4 12,7 14,2 15,7 16,0 16,0 9,0 95,0

Componente V 25,5 25,6 25,8 26,0 26,5 27,3 27,7 184,4

Total 141,2 146,0 151,2 154,2 157,1 159,5 94,8 1004,0

Fuente: Delegación de la UE en Croacia

Tras su acceso a la UE, Croacia tendrá acceso a los Fondos Estructurales y al Fondo de Cohesión. Los Fondos Estructurales son un instrumento de la UE para conseguir la cohesión de los nuevos miembros con el resto (EU Cohesion Policy). Se trata de la segunda política financiera más importante de la UE. El objetivo de esta política de cohesión es lograr el desarrollo equili-brado de la UE y el fortalecimiento de la competitividad global de la UE.

Estos instrumentos estructurales se han puesto a disposición de los estados miembros de la UE que requieran inversiones adicionales para su desarrollo económico y social de forma equilibrada y sostenible. Concretamente los fondos que engloba esta política son:

I. Desarrollo de las instituciones

II. Cooperación transfronteriza

III. Desarrollo regional

IV. Desarrollo de recursos humanos

V. Desarrollo rural



- Fondo Social Europeo (ESF, siglas en inglés) - Fondo Europeo de Desarrollo Regional, comúnmente conocidos como fondos FEDER

(ERDF, en inglés) - Fondo de Cohesión (CF, en inglés)

A partir de su entrada en la UE, Croacia recibirá los Fondos de Estructurales y de Cohe-sión. La Comisión Europeo publicó el 19 de marzo de 2013 el siguiente desglose de los créditos de compromiso para Croacia en 2013 (MFF 2007 - 2013).

Tabla Tabla Tabla Tabla 2222 ---- Fondos estructurales y de cohesión en Croacia (MFF 2007 Fondos estructurales y de cohesión en Croacia (MFF 2007 Fondos estructurales y de cohesión en Croacia (MFF 2007 Fondos estructurales y de cohesión en Croacia (MFF 2007----2013)2013)2013)2013)

Créditos de compromiso para Croacia (millones EUR) 2007 - 2012 2013 Total

1 Crecimiento inteligente e inclusivo 497 497 del cual: Cohesión económica, social y territorial 450 450 2 Crecimiento sostenible: Recursos Naturales 21 21 de los cuales: gastos del mercado y pagos directos 9 9 3 Seguridad y ciudadanía 73 73 4 Europa Global 0 0 5 Administración 0 0 6 Compensaciones 75 75

Total Comprometido 666 666 Total Efectivo 0 374 374

Fuente: Comisión Europea

La asignación presupuestaria para Croacia en el periodo 2014 – 2020 por parte de la UE no se trata de una cuestión cerrada. Esta asignación está dentro del Marco Multianual (Multi-annual Framework, MFF), el cual define las prioridades presupuestarias de la UE durante dicho periodo al que se refiere. Las negociaciones para el MFF 2014 – 2020 comenzaron en Julio de 2011 y finalmente se llegó a un acuerdo con el Consejo Europeo a principios de Febrero de 2013. Sin embargo, más tarde el Parlamento Europeo no aprobó dicho acuerdo, por lo que no se espera que este MFF se adopte hasta Julio de 2013, tras una nueva ronda de negociaciones.

Aunque todavía no hay un MFF 2014 – 2020, a continuación se presenta la asignación presupuestaria para Croacia que se presentó en el borrador que finalmente no fue aprobado por el Parlamento Europeo (borrador completo en el ANEXO II):



Tabla Tabla Tabla Tabla 3333 –––– Borrador no aprobado: Fondos estructurales Borrador no aprobado: Fondos estructurales Borrador no aprobado: Fondos estructurales Borrador no aprobado: Fondos estructurales y de cohesión en Croacia (MFF y de cohesión en Croacia (MFF y de cohesión en Croacia (MFF y de cohesión en Croacia (MFF 2014 2014 2014 2014 ---- 2020) 2020) 2020) 2020)

Créditos de compromiso para Croacia (millones EUR) 2014 2015 2016 2017 2018 2019 2020 Total

1 Crecimiento inteligente e inclusivo 1.088 1.295 1.3 30 1.361 1.395 1.428 1.462 9.359

del cual: Cohesión económica, social y territorial 1.011 1.214 1.244 1.271 1.300 1.329 1.358 8.727

2 Crecimiento sostenible: Recursos Naturales 458 477 488 496 520 542 564 3.545

de los cuales: gastos del mercado y pagos directos 118 134 148 163 193 222 249 1.227

3 Seguridad y ciudadanía 88 31 31 31 31 31 31 274 4 Europa Global 0 0 0 0 0 0 0 0 5 Administración 80 76 76 76 76 76 76 536

de la cual: gasto administrativo de las instituciones 80 76 76 76 76 76 76 536

6 Compensaciones 27 0 0 0 0 0 0 27 Total Comprometido 1.741 1.879 1.925 1.964 2.022 2.077 2.133 13.741

Total Efectivo 550 877 1.284 1.640 1.764 1.941 1.900 9.956 Fuente: Comisión Europea

Además del MFF que prepara la UE, Croacia, como otros Estados Miembros, está ade-más elaborando el llamado Acuerdo de Asociación o Partnership Agreement, en el que Croacia presentará el esquema de prioridades a financiar en el periodo 2014 – 2020. El Gobierno tiene previsto presentar el proyecto a la Comisión Europea en Junio de 2013.

En Enero de 2013, la Comisión Europea presentó el llamado Documento de Posición o Position Paper de Croacia, en el cual se detallan los principales obstáculos a los que se enfrenta el país, así como la opinión de la Comisión de Servicios sobre las prioridades de financiación que estima que serían fundamentales para Croacia:

- Fortalecer la competitividad de la economía

- Aumentar la participación en el mercado de trabajo, garantizar una mejor educación y reducir la pobreza, teniendo en cuenta las diferencias regionales

- La preservación y el mantenimiento de un medio ambiente sano y la protección de los recursos naturales y el patrimonio, demás de la adaptación al cambio climático

- Fortalecimiento de la capacidad administrativa, mejorar la administración pública eficiente y aumentar la participación de la sociedad civil y los interlocutores sociales

Este documento, el Documento de Posición o Position Paper, puede encontrarse en el ANEXO III, así como en la siguiente página web:

http://ec.europa.eu/regional_policy/what/future/index_en.cfm.



Una cuestión más a tener en cuenta, es que a partir de la entrada de Croacia en la UE, los fondos recibidos por la UE serán gestionados directamente por el Gobierno croata, sin con-tar con la intermediación de Bruselas. Por este motivo, la antena de Bruselas dejará de poder suministrar esta información. Además, a partir de Julio de 2013 todos los proyectos serán cofi-nanciados entre la UE y el Gobierno corata.

En relación con esto, es importante destacar que todas las licitaciones y el resto de opor-tunidades de negocio en el país, serán publicadas por el propio Gobierno croata, lo que significa que el idioma de publicación será el croata, no el inglés como había sido hasta ahora, cuando los proyectos eran financiados exclusivamente con los fondos IPA procedentes de la UE.

OTRAS INICIATIVAS DE INTERÉS DE LA UEOTRAS INICIATIVAS DE INTERÉS DE LA UEOTRAS INICIATIVAS DE INTERÉS DE LA UEOTRAS INICIATIVAS DE INTERÉS DE LA UE

1.1.1.1. Western Balkans Investment Framework (WBIFWestern Balkans Investment Framework (WBIFWestern Balkans Investment Framework (WBIFWestern Balkans Investment Framework (WBIF)

La Comisión Europea, como proveedor líder de subvenciones en toda la región, junto con el Consejo del Europe Development Bank (CEB), el European Bank for Reconstruction and Development (EBRD) y el European Investment Bank (EIB), como los principales proveedores de recursos para la inversión en la región, su cometido es maximizar sinergias y eficiencia de los instrumentos financieros europeos en el desarrollo económico de la región de los Balcanes Oc-cidentales. Se trata de una iniciativa conjunta entre la UE, las Instituciones Financieras Interna-cionales, donadores bilaterales y los Gobiernos de los países de los Balcanes Occidentales.

A fin de maximizar las sinergias y eficiencia de los instrumentos financieros europeos en el desarrollo económico de la región de los Balcanes Occidentales, la Comisión acordó junto con el BEI, el EBRD y el CEB la creación del Marco de Inversión en los Balcanes Occidentales.

Se trata de una iniciativa financiera innovadora que trata de coordinar con el mayor apro-vechamiento posible la financiación conjunta de estas instituciones de infraestructuras prioritarias en la zona de los Balcanes Occidentales.

El objetivo del WBIF es utilizar los fondos para contribuir al desarrollo de una nueva y me-jorada infraestructura que ayude a los Balcanes Occidentales a incrementar su desarrollo eco-nómico, su bienestar social y una mayor armonía en la región. Concretamente se materializa a través de proyectos pertenecientes a los siguientes sectores:

- Energía - Transporte - Medio ambiente - Social - Desarrollo del Sector Privado - Eficiencia energética

El WBIF proporciona unas subvenciones o préstamos, relativamente pequeños, en com-paración a la posterior gran atracción de financiación que los propios proyectos consiguen a partir de ello. Estas subvenciones o préstamos se utilizan:



1. En general, para la Asistencia técnica, es decir, para preparar el proyecto de cara a los posibles inversores para que se conviertan en financiadores: infor-mes, memorias, estudios técnicos, financieros y económicos.

2. En casos particulares, como un préstamo o subvención directa.

El WBIF ofrece un nuevo enfoque para abordar la gran y diversificada inversión que la re-gión necesita. Concretamente consiste en dos componentes esenciales:

1. Fondo Común de Donaciones (Joint Grant Facility – JGF ). Se encarga de poner en co-mún las subvenciones de la Comisión Europea, CEB, EBRD, EIB y donantes bilaterales.

2. Fondo Común de Prestamos (Joint Lending Facility – JLF ). Se basa en los préstamos concedidos por CEB, EBRD y EIB para incrementar la cooperación con otras institucio-nes multilaterales y de financiación bilateral.

Tanto las entidades públicas como las privadas son elegibles para recibir apoyo. La “ele-gibilidad” del proyecto depende de los siguientes criterios:

- Cobertura geográfica: Balcanes Occidentales (Albania, Bosnia y Herzegovina, Croacia, Kosovo, Macedonia, Montenegro y Serbia)

- Sectores: todos los que contribuyan al desarrollo socio-económico y medioambiental - Costes elegibles: todos son elegibles en principio, siempre que cumplan sus normas

respectivas - Tipo de subvención: asistencia técnica, cofinanciación de inversiones, incentivos, boni-

ficación de intereses, primas de seguro - Beneficiario: por endoso o sumisión - Complementario: programas IPA y otras donaciones - Coherencia con las políticas, normas y procedimientos de los contribuyentes

El WBIF dispone de un instrumento que se encarga de captar los recursos financieros para el desarrollo de proyectos: el IPF (Infrastructure Projects Facility). En el verano de 2012 se contabilizaban 130 proyectos que están o habían estado apoyados por el WBIF. Estos proyec-tos han recibido subvenciones del WBIF por un total de 270 millones EUR, que a su vez, han re-cibido préstamos de inversión por un valor de 6.400 millones de EUR por parte de diferentes Instituciones Financieras Internacionales. Siendo el valor total de estos proyectos mayor a 11.000 millones EUR.

Dado que Croacia tiene el estatuto de candidato a la UE, los sectores de “transporte” y “medio ambiente” no son, en general, elegibles para la ayuda del IPF, ya que Croacia dispone de otros mecanismos de financiación para dichos sectores.

2.2.2.2. Estrategia de la UE para el DanubioEstrategia de la UE para el DanubioEstrategia de la UE para el DanubioEstrategia de la UE para el Danubio

La región del Danubio engloba a 8 países de la UE (Alemania, Austria, Hungría, República Checa, Eslovaquia, Eslovenia, Bulgaria y Rumania) y 6 países no miembros (Croacia, Serbia, Bosnia y Herzegovina, Montenegro, Ucrania y Moldavia).

La UE tomó esta iniciativa con el objetivo de desarrollar el potencial económico, mejorar el medio ambiente y aumentar la seguridad de la cuenca del Danubio. Esta región, con una po-



blación de 100 millones de habitantes, alberga algunas de los territorios más pobres y más ricos de Europa y todos ellos tienen que hacer frente a la actual situación de la región:

- Problemas medioambientales (contaminación de aguas, inundaciones, cambio climático) - Tiene un alto potencial para el transporte que está sin explotar, con falta de conexiones

con el transporte por carretera y ferrocarril. - Insuficiencia de conexiones de energía - Desarrollo socioeconómico desigual - Sistemas de educación, investigación e innovación no coordinados - Deficiencias en seguridad

El objetivo de la “Estrategia de la UE para el Danubio” es fomentar la cooperación a largo plazo para abordar problemas locales entre las regiones interesadas. La Estrategia no supone una financiación adicional proveniente de la UE, pero es llevada a cabo a partir de los recursos ya disponibles de acuerdo a otros planes vigentes de los países afectados. Estos países deben hacer uso de los fondos europeos recibidos a través de la política de cohesión, de otros pro-gramas de la UE o instrumentos financieros y de varias instituciones financieras institucionales.

Aunque no hay ninguna financiación adicional aprobada para esta Estrategia, la Comi-sión desea que se utilicen de manera más eficaz los fondos actuales procedentes de los fondos europeos para el periodo 2007-2013. Para ello, la UE ha identificado las áreas prioritarias para la Estrategia del Danubio:

- Conexiones de transportes - Conexiones de energía - Medio ambiente - Desarrollo socioeconómico - Aumentar la seguridad

Conexión de transportesConexión de transportesConexión de transportesConexión de transportes

La estrategia pretende mejorar la movilidad y la multimodalidadmejorar la movilidad y la multimodalidadmejorar la movilidad y la multimodalidadmejorar la movilidad y la multimodalidad (la utilización de varios medios de transporte en un solo viaje) en la región desarrollando la navegación fluvial sostenible pero también las infraestructuras viarias, ferroviarias y aeroportuarias. Concretamente, uno de los objetivos es aumentar un 20% el transporte de mercancías por el Danubio de aquí a 2020, así como desarrollar las redes ferroviarias y de carreteras.

Conexiones de energía Conexiones de energía Conexiones de energía Conexiones de energía

Las redes presentan numerosas lagunas y defectos debido a insuficiencias en relación con la capacidad y la calidad o debido a un mantenimiento que deja que desear. Es necesa-rio favorecer la producción de energías más sostenibles.

La interconexión de los mercados de energía de la región ayudará a prevenir que se repi-tan los cortes de electricidad y la escasez de combustible de los inviernos pasados. El aumento resultante de la competencia deberá reducir también los costes para los consumidores.



Medio ambienteMedio ambienteMedio ambienteMedio ambiente

La región del Danubio está atravesada por cadenas montañosas como los Cárpatos, los Balcanes y una parte de los Alpes. Por ello, la región alberga una de las floras y faunas más ricas de Europa. Sin embargo, las catástrofes medioambientales y la contaminación no la han puesto a salvo. Los países ribereños deben adoptar medidas comunes y, por ello, el Plan de Acción propone restablecer y conservar la calidad de las aguas, gestionar los riesgos medioambienta-les, así como preservar la biodiversidad, los paisajes y la calidad del aire y de los suelos.

Un ejemplo concreto será el de las nuevas depuradoras que mejorarán la calidad del agua y reducirán la contaminación de los ríos por aguas residuales no depuradas y fertilizantes. La estrategia incluye proyectos para fomentar las tecnologías ecológicas y proteger la biodiversi-dad.

Desarrollo socioeconómicoDesarrollo socioeconómicoDesarrollo socioeconómicoDesarrollo socioeconómico

La región alberga algunas de las zonas más competitivas de la UE pero también de las más pobres, las poblaciones más cualificadas y menos instruidas, los niveles de vida más eleva-dos y los más bajos. Con el fin de superar las disparidades educativas y profesionales, y en el marco de un enfoque de inclusión social, el Plan de Acción pretende desarrollar la sociedad del conocimiento mediante la investigación, la enseñanza y las tecnologías de la información. Tam-bién pretende apoyar la competitividad de las empresas e invertir en recursos humanos y com-petencias. Deben beneficiarse especialmente las comunidades marginadas (incluidos los gita-nos, la mayoría de los cuales vive en la región).

La región del Danubio también dispone de una herencia cultural importante. Por tanto, la Comisión desea fomentar la promoción de la cultura y del turismo con el fin de otorgar a la re-gión una dimensión europea y mundial.

Aumentar la Aumentar la Aumentar la Aumentar la seguridadseguridadseguridadseguridad

La región del Danubio incluye Estados miembros que se han adherido a la UE en mo-

mentos diferentes, así como países candidatos y terceros países. La mayoría tiene problemas similares, pero no todos disponen de los mismos recursos. De este modo, con el fin de mejorar la capacidad institucional, la cooperación y la seguridad, el Plan de Acción propone trabajar con-juntamente en favor de una administración más eficaz de la seguridad y de la lucha contra la gran criminalidad y el crimen organizado.



INSTITUCIONES RELACIONADASINSTITUCIONES RELACIONADASINSTITUCIONES RELACIONADASINSTITUCIONES RELACIONADAS

Para que los fondos europeos sean una realidad en Croacia y para la futura adhesión de este país a la UE, existen dos instituciones que se encargan de la canalización de la información y gestión de fondos y otras cuestiones relativas a la UE, tales como normativas o regulación de diferentes actividades, entre otros. Estas instituciones se dirigen por lo tanto, no solo a empre-sas, sino también a los ciudadanos.

1. Ministerio de Desarrollo Regional y de los Fondos de la UEMinisterio de Desarrollo Regional y de los Fondos de la UEMinisterio de Desarrollo Regional y de los Fondos de la UEMinisterio de Desarrollo Regional y de los Fondos de la UE; Branko Grčić, Ministro.

Ministry of Regional Development and EU FundsMinistry of Regional Development and EU FundsMinistry of Regional Development and EU FundsMinistry of Regional Development and EU Funds Trg kralja Petra Krešimira IV,1 10 000 Zagreb, Croatia Tel: +385 1 6400 600 Fax: +385 1 6400 644 [email protected] http://www.mrrfeu.hr

2. Delegación de la UE en Croacia; Delegación de la UE en Croacia; Delegación de la UE en Croacia; Delegación de la UE en Croacia; Paul Vandoren, Head of the Delegation of the European Union to the Republic of Croatia. Esta delegación se disolverá con la entrada de Croacia en la UE. A partir de Julio de 2013 no habrá una de-legación de la UE en Croacia, sino solamente una representación de esta insti-tución (UE).

Delegation of the European Union to the Republic of CroatiaDelegation of the European Union to the Republic of CroatiaDelegation of the European Union to the Republic of CroatiaDelegation of the European Union to the Republic of Croatia Trg žrtava fašizma 6, 10000 Zagreb, Croatia Tel: 00 385 (0) 1 4896 500 Fax: 00 385 (0) 1 4896 555 [email protected] http://www.delhrv.ec.europa.eu/?lang=en



2. 2. 2. 2. BBBBanco anco anco anco EEEEuropeo para la uropeo para la uropeo para la uropeo para la RRRReconstrucción y el econstrucción y el econstrucción y el econstrucción y el DDDDesarrolloesarrolloesarrolloesarrollo

El objetivo del BERD es ayudar a Croacia en su acceso a la UE a través de la mejora de la competitividad de las empresas locales y de las condiciones de inversión, así como mediante la restructuración y modernización de la infraestructura del país.

Para ello el BERD apoya los diferentes procesos de privatización, apoya la inversión ex-tranjera en el país y por su puesto, el desarrollo de nuevas infraestructuras.

En particular, las actividades del BERD en Croacia están integradas dentro del esfuerzo internacional de promover el crecimiento y la estabilidad en el sureste europeo.

Por ello, la actividad del BERD se materializa a través del soporte para el aumento de la competitividad y de la eficiencia energética de las pequeñas y medianas empresas y con ello, conseguir dar soporte para la mejora de la seguridad energética del país y de la infraestructura comercial municipal. Concretamente las prioridades de este banco durante el periodo 2010 – 2013 han sido las que siguen:

� Conseguir apoyo regional a las empresas croatas � Financiación comercial de la infraestructura nacional y municipal, � Financiación de las PYME y el turismo

Desde su participación en Croacia, el BERD (Banco Europeo de Reconstrucción y Desa-rrollo) ha apoyado diferentes aspectos como por ejemplo, los procesos de privatización, el apo-yo a la inversión extranjera directa, la reestructuración del sector financiero (bastante afectado después de la crisis) y el desarrollo de la infraestructura.

El BERD comenzó a trabajar en Croacia en 1994. Desde esta fecha ha invertido más de 2.000 millones de EUR.

Las cifras de su volumen de negocios (variable flujo anual que incluye: préstamos, equity, trade finance) para los últimos dos años son de 153 millones de EUR para 2011 y de 205 millo-nes de EUR para 2012.

Estas cantidades pueden descomponerse en las ayudas al sector público y privado. Pu-de observarse como en 2011 la mayor parte de las ayudas fueron destinadas al sector público, mientras que en 2012, se destinaron al sector privado.

Tabla Tabla Tabla Tabla 4444 ---- Destino de las ayudas del BERD en Croacia Destino de las ayudas del BERD en Croacia Destino de las ayudas del BERD en Croacia Destino de las ayudas del BERD en Croacia

Millones EUR 2011 2012

Sector privado 26 146

Sector público 127 59

Volumen de negocio 153 205

Fuente: BERD



Corporat ivo; 26%

Energía; 20%Inst ituciones

f inancieras; 24%

Infraestructuras; 30%

En 2011 el volumen de negocio del BERD ascendió a un total de 153 millones de EUR en Croacia, además de los 15 millones de EUR de line de crédito concedida a Privredna Banka Za-greb destinados a préstamos para proyectos que mejorarían la competitividad de las pyme. Los proyectos actuales que está financiando el BERD se pueden clasificar en cuatro grandes grupos:

1. Corporativo:Corporativo:Corporativo:Corporativo: agroindustriales, manufacturas, servicios, inmobiliario, turismo y tele-comunicaciones.

2. Energía:Energía:Energía:Energía: recursos naturales y sector de la energía. 3. Instituciones financieras:Instituciones financieras:Instituciones financieras:Instituciones financieras: inversiones en PYME a través de intermediarios financie-

ros. 4. Infraestructura:Infraestructura:Infraestructura:Infraestructura: infraestructura municipal y transporte.

Fuente: BERD

Algunos de los proyectos más destacados en el 2011 fueron el apoyo a la inversión para la construcción de pequeñas empresas locales, financiación para la construcción de la planta hidroeléctrica de Ombla o la promoción de la generación y uso de energía verde en Croacia.

En 2012, el volumen de negocios del BERD en Croacia fue de 205 millones de EUR, donde 146 millones de EUR se destinaron al sector privado y 59 millones de EUR al público. Por otro lado, el valor de todos los proyectos financiados por su parte fue de 114 millones de EUR, que está relacionado con proyectos de infraestructuras, inmobiliario/turismo, instituciones finan-cieras y Agribusiness en las siguientes cuantías:

Tabla Tabla Tabla Tabla 5555 ---- Valor de los proyectos financiados por el BERD en Croacia en 2012 Valor de los proyectos financiados por el BERD en Croacia en 2012 Valor de los proyectos financiados por el BERD en Croacia en 2012 Valor de los proyectos financiados por el BERD en Croacia en 2012

Infraestructuras 48

Inmobiliario/Turismo 31,3

Instituciones Financieras 18,9

Agribusiness 15,8

Total PROYECTOS (mill. EUR) 114

Fuente: BERD



Además se presentan a continuación el total de las facilidades marco que el BERD con-cedió a Croacia: un total de 20,75 millones de EUR que se descomponen como sigue:

Tabla Tabla Tabla Tabla 6666 ---- Facilidades marco que el BERD concedió a Croacia en 2012 Facilidades marco que el BERD concedió a Croacia en 2012 Facilidades marco que el BERD concedió a Croacia en 2012 Facilidades marco que el BERD concedió a Croacia en 2012

Western Balkans Sustainable Energy Direct Financing Facility 3,75

EBRD - Italy Local Enterprise Facility 2

Western Balkans Private Sector Support Facility 5

Western Balkans and Croatia Financing Framework 10

Total FACILIDADES MARCO (mill. EUR) 20,75

Fuente: BERD

En la propia página web del BERD se pueden consultar los proyectos financiados por es-te organismo, ya estén abiertos o en proceso de adjudicación. Sin más ánimo que dar un ejem-plo, se presentan los proyectos firmados y pendientes de aprobación de 2012 y 2013, para los cuales irán saliendo diferentes invitaciones a licitar:

Fecha Proyecto Sector Público/Privado Estado

26-mar-13 44336 Aguas y aguas residuales en Rije-ka

Infraestructura medioam-tiental y municipal Privado Pendiente

de revisión

29-oct-12 44325 Danieli - ABS SISAK Servicios y manufacturas Privado Firmado

02-jul-12 42125 Aguas residuales en Sibenik Infraestructura medioam-tiental y municipal Público Firmado

21-jun-12 43928 Société Générale - Splitska Banka Asociación par el crecimiento

Préstamos a bancos Privado Firmado

07-jun-12 43818 Erste Bank Croatia-Senior LOAN MSME Financiamiento Préstamos a bancos Privado Firmado

11-may-12 42542 Rehabilitación de la infraestructu-

ra del puerto de Split Transporte Público Firmado

Fuente: BERD



3.3.3.3. Banco MundialBanco MundialBanco MundialBanco Mundial

La misión del Banco Mundial en Croacia tiene por objetivo desarrollar la competitividad de la economía del país y apoyarlo en su preparación para su ingreso en la Unión Europea.

Tal y como anuncia el propio banco, “el objetivo del BM es facilitar la convergencia de Croacia con otros países de la UE de un modo fiscal, social y medioambientalmente sostenible”.

Para ello el BM ha mantenido una estrategia de inversión diversificada en múltiples secto-res como el de la educación, energía, industria, transporte o infraestructuras, entre otros, y que han supuesto una importante inversión en la economía croata.

Sus objetivos por lo tanto, son crear instituciones transparentes, fomentar un ambiente favorable para el crecimiento del sector privado y apoyar el uso sostenible de los recursos natu-rales. Durante el periodo 2009 – 2012 está prevista una inversión de entre 750 y 1.364 millones de euros. Las cantidades a las cuales el gobierno croata podrá acceder variarán en función del cumplimiento de los objetivos marcados por el Banco Mundial.

Desde 1993, el BM ha proporcionado financiación para 47 proyectos en Croacia por un total de 3.300 millones de dólares. En la actualidad el BM se mueve dentro de la denominada “Estrategia de alianza 2009-13” y la cuantía total de los préstamos que ha concedido hasta aho-ra es de 1.052 millones de USD. En la actualidad hay 12 proyectos en marcha, sin terminar.

Una vez completada dicha estrategia, pues abarca hasta el 2013, se pasará a la “Nueva estrategia de alianza 2014-17” que actualmente está en estado de borrador. Los objetivos de esta nueva estrategia será conseguir la estabilidad macroeconómica, acelerar las reformas es-tructurales y lograr una mejor utilización de los fondos provenientes de la UE.



4. 4. 4. 4. BBBBanco anco anco anco EEEEurourourouropeo de peo de peo de peo de IIIInversionesnversionesnversionesnversiones

EL BEI es uno de los mayores financiadores del área de los Balcanes, donde lleva parti-cipando desde el año 1977.

Con respecto a Croacia, el objetivo del BEI es proporcionarle los recursos financieros ne-cesarios para financiar proyectos con garantías de la UE, y con ello contribuir al desarrollo del “Croatian National Development Plan” y su posterior adhesión a la UE. Por este motivo, el BEI coopera de forma muy cercana con otras cofinanciadoras, como el BERD o el BM para poder conseguir su objetivo último de hacer posible la ejecución de los proyectos más adecuados que faciliten la integración de Croacia en la UE.

Llevado a su materialización puede subrayarse que entre 2001 y 2010 el BEI ha invertido 2.400 millones de EUR, donde el 64% ha ido destinado a proyectos en transporte.

Entre 2001 y 2008 ha invertido 1.572 millones de EUR: el 44% para transporte (705 mi-llones), 25% para préstamos intermedios (386 millones), 18% en energía (281 millones) y el 13% restante para infraestructuras (200 millones). Como podrá verse en la tabla que se muestra a continuación, en 2010 el BEI incrementó sus actividades en Croacia con el fin de reducir el im-pacto negativo de la crisis. Esta ayuda fue fundamentalmente a inversiones en PYME.

En 2012, este banco ha financiado proyectos por valor de 300 millones de EUR. Esta fi-nanciación de 2012 se ha destinado sobretodo a apoyar a las pyme y a los gobiernos locales. En 2013 ya se ha concedido financiación a un proyecto por valor de 250 millones de EUR.

Tabla Tabla Tabla Tabla 7777 ---- Inversión del BEI en Croacia (2008 Inversión del BEI en Croacia (2008 Inversión del BEI en Croacia (2008 Inversión del BEI en Croacia (2008 ---- 2012) 2012) 2012) 2012)

Inversión del BEI en Croacia

(millones de EUR)

2008 170

2009 415

2010 511

2011 305

2012 300

Fuente: BEI

Según anuncia el propio banco, “para el futuro, el sector de las infraestructuras, en con-creto de las infraestructuras de transporte seguirá siendo una prioridad del BEI, sobre todo el fe-rrocarril. También se prevé una importante financiación en el sector del medio ambiente, en con-creto, proyectos relacionados con el tratamiento de aguas residuales, salud y educación”.



Estos son los proyectos que el BEI ha financiado a lo largo de 2012 en Croacia y el pro-yecto al que se le ha concedido financiación para el 2013:

Tabla Tabla Tabla Tabla 8888 ---- Proyectos financiados por el BEI en Croacia en 2012 y 2013 Proyectos financiados por el BEI en Croacia en 2012 y 2013 Proyectos financiados por el BEI en Croacia en 2012 y 2013 Proyectos financiados por el BEI en Croacia en 2012 y 2013

Proyectos financiados en 2012 Sector Firma Mill EUR

ESB Loan for smes & Mid-Cap II Líneas de crédito 21/12/2012 50

HBOR Loan for smes and Mid-Cap III Líneas de crédito 18/09/2012 100

HBOR Loan for smes and Mid-Cap III Líneas de crédito 10/02/2012 150

300

Proyectos financiados en 2013 Sector Firma Mill EUR

HBOR Loan for smes and Mid-Cap IV Líneas de crédito 25/01/2013 250

Fuente: BEI

En la página web del BEI se pueden consultar los diferentes proyectos en los que partici-pa este banco. Estos proyectos a fecha de abril de 2013 son los que siguen:

Fecha de entrada Proyecto Sector Estado

08-feb-13 Extensión del aeropuerto de Zagreb Transporte Bajo evaluación 09-nov-12 HBOR Loan para pyme Líneas de crédito Firmado 12-mar-12 Biogas Energía Aprobado 29-dic-11 Rehabilitación de ferrocarril Transporte Bajo evaluación

07-feb-11 Subestación paso superior (ferrocarril) Zagreb Transporte Aprobado

25-may-09 SB Loan para pyme Líneas de crédito Aprobado

Fuente: BEI



BIBLIOGRAFÍA Y CONTACTOS

Unión Europea: Fondos IPAUnión Europea: Fondos IPAUnión Europea: Fondos IPAUnión Europea: Fondos IPA, Estructurales, Estructurales, Estructurales, Estructurales y de Cohesión y de Cohesión y de Cohesión y de Cohesión

� Comisión Europea (información): http://ec.europa.eu/enlargement/instruments/funding-by-country/croatia/index_en.htm

� Comisión Europea (información fondos): http://ec.europa.eu/regional_policy/thefunds/ipa/croatia_development_en.cfm

� Comisión Europea (proyectos) : https://webgate.ec.europa.eu/europeaid/online-services/index.cfm?ADSSChck=1359104349939&do=publi.welcome&userlanguage=es

� Delegación de la UE en Croacia: http://www.delhrv.ec.europa.eu/?lang=en � Ministerio de Desarrollo Regional y de Fondos de la UE de Croacia:

http://www.mrrfeu.hr/default.aspx?id=866 � Diario Oficial de la UE (DOCE) � Oficina Comercial y Económica de la Embajada de España en Zagreb:

http://www.oficinascomerciales.es/icex/cda/controller/pageOfecomes/0,,5280449_5282899_5283038_0_HR,00.html

Savska Cesta, 41, 1º - 10000 Zagreb (Croacia) Teléfono: +385 161 76 901/ 663

� Departamento de “Oportunidades de Negocio” de ICEX: http://www.icex.es/icex/cda/controller/pageICEX/0,6558,5518394_5519196_6735919_0_0_-1,00.html

� Antena ICEX en Bruselas: Contacto: María Lacasa Díaz, Jefe de Dpto. Antena Programas Europeos Oficina Económica y Comercial de la Embajada de España Rue Montoyer, 10 – 1000 Bruselas [email protected] Teléfono: +32 (0)2 551 10 57/ 59 Voz IP: (+34) 91 349 86 46

� Documentos sobre programas y proyectos: http://www.icex.es/ayudaexternaue Croacia: http://www.icex.es/ayudaexternaue/croacia.htm

� Agencia de Financiación y Contratación croata: http://www.safu.hr/en � Banco Croata para la Reconstrucción y el Desarrollo: http://www.hbor.hr/art1074 � Funcionamiento de los Fondos Estructurales y de Cohesión:

http://ec.europa.eu/regional_policy/thefunds/funding/index_en.cfm

UE: Western Balkans Investment Framework (WBIFUE: Western Balkans Investment Framework (WBIFUE: Western Balkans Investment Framework (WBIFUE: Western Balkans Investment Framework (WBIF)

� http://ec.europa.eu/enlargement/pdf/western-balkans-conference/wbif-a4-def_en.pdf � Instrumento IPF: http://www.wbif-ipf.eu



UE: Estrategia de la UE para el DanubioUE: Estrategia de la UE para el DanubioUE: Estrategia de la UE para el DanubioUE: Estrategia de la UE para el Danubio

� http://ec.europa.eu/regional_policy/cooperate/danube/index_en.cfm � Oportunidades financieras: www.danube-region.eu/pages/funding-opportunities

BBBBanco anco anco anco EEEEuropeo para la uropeo para la uropeo para la uropeo para la RRRReconstrucceconstrucceconstrucceconstrucción y el ión y el ión y el ión y el DDDDesarrolloesarrolloesarrolloesarrollo

� http://www.ebrd.com/downloads/research/factsheets/croatia.pdf � Página web general: http://www.ebrd.com/pages/country/croatia.shtml � Proyectos:

http://www.ebrd.com/saf/search.html;jsessionid=E253D259F8ACC29A50CCF1370E602ABF?type=procurement_notice&contract=Project%20goods,%20works%20and%20services

� Análisis histórico: información de proyectos adjudicados y a qué empresas se han dado. Interesante para conocer competidores y posibles socios. http://www.ebrd.com/pages/workingwithus/procurement/project/reports.shtml

� Contacto: Zsuzsanna Hargitai EBRD Croatia office Miramarska 23 3rd floor 10000 Zagreb Tel: +385 1 6000 310 Fax: +385 1 6197 218

EBRD Headquarters One Exchange Square LONDON EC2A 2JN United Kingdom Tel: +44 20 7338 6000 Fax: +44 20 7338 6100

Enrique Bal EBRD London office [email protected]

Banco MundialBanco MundialBanco MundialBanco Mundial

Antena en Washington: Antena en Washington: Antena en Washington: Antena en Washington: Sara Hormigo, Jefa del Departamento Multilateral [email protected]

BBBBanco anco anco anco EEEEuropeo de uropeo de uropeo de uropeo de IIIInversionesnversionesnversionesnversiones

� www.eib.org/projects/pipeline/regions/enlargement/index.htm



ANEXOSANEXOSANEXOSANEXOS

Anexo IAnexo IAnexo IAnexo I Ayuda externa de la UE: Instrumento de Preadhesión (IPA) en Croacia. Resumen documento de planificación orientativa plurianual 2011 – 2013. Anexo IIAnexo IIAnexo IIAnexo II Reglamento del Consejo por la que se establece el Marco Financiero Plurianual para el período 2014 – 2020. Anexo IIIAnexo IIIAnexo IIIAnexo III Posición de la Comisión de Servicios para el desarrollo del Acuerdo de Asociación y los progra-mas en la República de Croacia en el período 2014 – 2020.

Dpto. Antena Programas Europeos

Oficina Económica y Comercial de España en Bélgica

[email protected]

Tel: 0032 2 551 10 59

1

AYUDA EXTERNA DE LA UNIÓN EUROPEA INSTRUMENTO DE PREADHESIÓN (IPA) CROACIA

RESUMEN DOCUMENTO DE PLANIFICACIÓN ORIENTATIVA PLURIANUAL 2011-2013

Dotación: 430,4 Mill. €

ÁREAS DE ACTUACIÓN 2011 2012 2013 2011-2013

1 - Ayuda a la transición y desarrollo institucional 39,9 40,8 38,5 119,3 2 - Cooperación transfronteriza 18,87 16,44 17 49,31 3 - Desarrollo regional 58,2 59,3 62 179,5 4 - Desarrollo de recursos humanos 16 16,04 18 50,04 5 - Desarrollo rural 26,5 27,3 27,7 81,5 TOTAL ( Mill. € ) 140,6 143,5 146,2 430,4

1. TRANSICIÓN Y DESARROLLO INSTITUCIONAL 2011-2013: 119 M€

A. Justicia y asuntos de interior y derechos fundamentales 64 M€

- Reforma judicial - Derechos Fundamentales (minorías y refugiados) - Lucha contra la corrupción, delincuencia organizada y blanqueo de capitales - Armonización de las políticas de emigración visados y asilo - Gestión de fronteras - Plan de acción Schengen

B. Reforma de la Administración Pública 9 M€ - Desarrollo del funcionariado - Mecanismos de contratación pública - Fiscalidad - Estadística - Unión aduanera - Control financiera

Por otra parte, 26 M€ se destinarán a Apoyo institucional en los subcomponentes de Transporte, Medio Ambiente y Competitividad en el marco del desarrollo regional; 10 M€ se destinarán al componente IV (Desarrollo de Recursos Humanos) y 10 M€ al Componente V (Desarrollo Rural).



[email protected]

Tel: 0032 2 551 10 59

2

2. COOPERACIÓN REGIONAL TRANSFRONTERIZA- CBC 2011-2013: 49 M€

Pueden consultar los Programas 2007-2013 de Cooperación Transfronteriza en el siguiente enlace: http://ec.europa.eu/regional_policy/funds/ipa/crossborder_en.htm

3. DESARROLLO REGIONAL 2011-2013: 179 M€

Los fondos del IPA correspondientes al Componente III se ejecutarán a través de tres programas operativos plurianuales relativos, respectivamente, al medio ambiente, los transportes y la competitividad regional.

A. Medio ambiente y Cambio Climático 77 M€

- Tratamiento de residuos sólidos - Aguas residuales - Agua potable - Capacidad institucional

B. Transporte 77 M€

- Transporte ferroviario (corredores X y V de la RTE) - Vías navegables - Apoyo institucional

C. Competitividad regional 51 M€

- Competitividad y convergencia con la UE - Reducción de las disparidades socioeconómicas regionales - Desarrollo y medio ambiente (bajas emisiones de carbono)

4. DESARROLLO DE RECURSOS HUMANOS 2011-2013: 50 M€

La realización del Componente IV del IPA, “Desarrollo de los recursos humanos” comenzó en 2009. En diciembre de 2008 se aprobó el otorgamiento a las autoridades croatas de los poderes de gestión para su realización. Antes del 31 de diciembre de 2010, se convocaron las licitaciones de los ocho planes de subvenciones y se firmaron siete planes de subvenciones, como preparativos para el Fondo Social Europeo. El 23 de noviembre de 2010 se revisó y aprobó el programa operativo de desarrollo de los recursos humanos. El componente IV del IPA está sufriendo algunos retrasos.



[email protected]

Tel: 0032 2 551 10 59

3

Las prioridades se detallan a continuación: - Educación y formación - Empleo e integración social - Desarrollo de la capacidad institucional

5. DESARROLLO RURAL 2011-2013: 81 M€

El Componente V “Desarrollo Rural”, empezó en 2010. Destaca el escaso número de propuestas recibidas. A pesar de los avances realizados, los retrasos que seguía habiendo a finales de 2009 pusieron en peligro los fondos asignados para los años 2007 y 2008. De conformidad con la norma presupuestaria de “n+3”, dichos fondos deberían ser liberados si no se gastan antes de que finalice el año 2011. Dentro del Componente V del IPA se presta apoyo al sector del desarrollo rural mediante un programa único de desarrollo rural plurianual, que abarca la totalidad del período de 2007 a 2013. Se detalla a continuación las actividades prioritarias: - Preparación de la aplicación y gestión de la política agrícola - Apoyo institucional - Adaptación del Acervo comunitario y aplicación de normas de la PAC y sectores conexos

(seguridad alimentaria, sector veterinario y fitosanitario, medidas agroambientales, apoyo a la iniciativa Leader1

1 Leader (Relaciones entre actividades de desarrollo de la economía rural) es una iniciativa que se inscribe en la política europea en favor del desarrollo rural, financiada por los Fondos Estructurales de la UE. El programa se dirige a diversificar las actividades económicas de las zonas rurales a través de la puesta en práctica de estrategias de desarrollo territorial innovadoras, sostenibles, integradas y participativas. Está centrada principalmente en la asociación y en las redes de intercambio de experiencias. (http://ec.europa.eu/agriculture/rur/leaderplus/index_es.htm)

EN EN

EUROPEAN COMMISSION

Brussels, 6.7.2012 COM(2012) 388 final

2011/0177 (APP)

Amended proposal for a

COUNCIL REGULATION

laying down the multiannual financial framework for the years 2014-2020

EN 2 EN

EXPLANATORY MEMORANDUM

1. CONTEXT OF THE AMENDED PROPOSAL

Following the adoption of its proposal for a Council Regulation laying down the multiannual financial framework for the years 2014-20201 ("MFF Regulation"), the Commission submitted proposals for all the legislative acts concerning the multiannual programmes for that period. As detailed under point 2 below, two of these proposals imply amendments to the proposal for a MFF Regulation.

It is also necessary to update the multiannual financial framework table included in the annex to the MFF Regulation to take into account the following elements:

(a) Allocations for the Republic of Croatia are to be added to the Commission's proposal for EU-27 based on the Act of Accession signed on 9 December 20112.

(b) The availability of new data for regional GDP and national GNI results in changes to the regional and national eligibility under the Union's cohesion policy and therefore in a recalculation of the regional and national allocations.

(c) The most recent macro-economic forecasts and projections should be taken into account to calculate the maximum national allocations for Member States subject to capped cohesion envelopes as well as to express the ceilings of the MFF table for the period 2014-2020 as a percentage of EU-28 GNI.

2. LEGAL ELEMENTS OF THE AMENDED PROPOSAL

Proposed amendments to recitals and articles are marked in bold and underlined in the attached Amended Proposal.

2.1 Article 7

On 15 November 2011 the Commission presented a proposal for a Regulation of the European Parliament and of the Council laying down general provisions on the Asylum and Migration Fund and on the instrument for financial support for police cooperation, preventing and combating crime, and crisis management3 ("Horizontal Regulation"), a proposal for a Regulation of the European Parliament and of the Council establishing the Asylum and Migration Fund4, and a proposal for a Regulation of the European Parliament and of the Council establishing, as part of the Internal Security Fund, the instrument for financial support for police cooperation, preventing and combating crime, and crisis management5. The same day, the Commission presented a proposal for a Regulation of the European Parliament and of the Council establishing, as part of the Internal Security Fund, the instrument for

1 COM(2011) 398 final of 29.6.2011. 2 OJ L 112, 24.4.2012, p. 21. 3 COM(2011) 752 final. 4 COM(2011) 751 final. 5 COM(2011) 753 final.

EN 3 EN

financial support for external borders and visa6. The three specific Regulations provide that the provisions of the Horizontal Regulation shall apply to them.

In the Horizontal Regulation the Commission announced that it will amend its proposal for a MFF Regulation to extend the provisions of Article 7 to the programmes implemented under shared management under the Asylum and Migration Fund and Internal Security Fund7. This is part of the Commission's endeavour to harmonise rules applicable to shared management. Accordingly, whilst every effort should be made to ensure that the national programmes under both Funds are adopted in 2014, a transfer to subsequent years of allocations not used in 2014 should be possible so as to avoid the loss of related commitment appropriations.

2.2 Article 8 (and recital No 7)

On 6 October 2011, the Commission presented a proposal for a Regulation of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural and Rural Development Fund and the European Maritime and Fisheries Fund covered by the Common Strategic Framework and laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1083/2006 ("CSF Regulation")8.

Article 21 of the CSF Regulation provides for rules on conditionality linked to the coordination of the Member States' economic policies, including the possible suspension of commitments and payments for programmes supported from the Funds covered by the Common Strategic Framework.

Article 21(8), last paragraph, of that Regulation provides that, when the conditions for lifting a suspension of commitments or payments are met, the Council shall, at the same time, decide, on a proposal of the Commission, to re-budget the suspended commitments in accordance with Article 8 of the Council Regulation laying down the multiannual financial framework for the years 2014-2020.

Consequently, Article 8 (and recital No 7) has to be amended accordingly to allow for the transfer and re-budgeting of suspended commitments.

Article 6 shall apply to decisions related to the lifting of a suspension of appropriations for payments.

2.3 Article 11 and new Article 11a (and recital No 7 and Article 9(5))

Beyond the two above changes stemming from the legislative proposals on multiannual programmes, the Commission also proposes to amend Article 11 of its proposal for a MFF Regulation: For reasons of legal clarity and terminology it proposes to split Article 11 into two Articles, so as to distinguish the case of the

6 COM(2011 750 final. 7 COM(2011) 752 final, point 5.1. of the explanatory memorandum, page 7, last bullet point. 8 COM(2011) 615 final.

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accession of a new Member State to the Union from that of the reunification of Cyprus. This requires recital No 7 and Article 9(5) to be amended accordingly.

2.4 Amendments to recital No 8 and Article 5

For clarification purposes, and given the availability of more recent macroeconomic forecasts, some minor amendments are made to recital No 8 and Article 5 of the proposal.

3. BUDGETARY IMPLICATIONS

3.1 Incorporating the allocations for Croatia in the MFF table

Country-specific allocations for the Republic of Croatia need to be added to the Commission's proposal for the Structural Funds, the Cohesion Fund, the European Agricultural Fund for Rural Development, the European Maritime and Fisheries Fund, the Asylum and Migration Fund and the Internal Security Fund.

These allocations are calculated on the basis of the same methodology applied for the EU-27, subject to the transitional provisions laid down in the Act of Accession.

Accordingly, for the Structural Funds and the Cohesion Fund, the amounts calculated on the basis of the proposed allocation method for the period 2014-2020 are subject to a twofold adjustment:

– A phasing-in schedule of 70% for the year 2014 and 90% for the year 2015;

– The allocations for 2014 and 2015 should amount to respectively 2.33 times and 3 times the 2013 allocation insofar as the limits of the new acquis allow (i.e. the capping rate of 2.5% of national GDP cannot be breached).

As regards the CAP:

– For market measures the allocation is calculated on the full application of the acquis, subject to the special conditions laid down in the Act of Accession for the wine sector;

– For direct payments, the same 10 year phasing-in schedule is applied to the applicable level of such payments in the EU-15 as was the case for the Member States which acceded on 1 May 2004 and 1 January 2007;

– For rural development, the allocation is based on the same methodology which the Commission applied for the overall amounts for EU-27. The Act of Accession does not foresee a phasing-in period.

As regards the EMFF, the allocation is subject to the same twofold adjustment for the years 2014-2015 (phasing-in and multiplicator) as is the case for the structural and cohesion funds.

Croatia participates fully in the Asylum and Migration Fund as of 2014. It receives a special 'Schengen' allocation for the year 2014 and consequently shall not benefit from the external borders and visa strand of the Internal Security Fund for that year.

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Furthermore, Croatia shall receive a temporary "cash-flow facility" to improve its net budgetary position for the year 2014.

Besides benefitting from these pre-allocated amounts, Croatia shall also fully participate in all other internal policies. Therefore all the non pre-allocated envelopes need to be adjusted accordingly. The same approach as for the 2013 amounts for the closure of the Accession negotiations has been applied – i.e. the amounts are calculated in proportion to the share of Croatia in the GDP and the population of EU-27, resulting in an increase of all the proposed non pre-allocated envelopes by 0.62%9.

Heading 5 would need to be updated to take account of the additional administrative expenditure requirements resulting from the accession of Croatia. With Croatia's accession and to manage the enlarged Union, additional resources will be needed mainly for linguistic, legal and programme management tasks. For the Commission alone the net reinforcement needed will amount to 384 additional full time equivalent units, mostly in the form of posts to be added to the establishment plan with their phasing in to be completed by 2014. The other Institutions will need additional resources mainly for linguistic and legal expenditure, equipment and operating expenditure, communication activities and IT management tasks, requiring a net reinforcement of some 274 additional full time equivalent units mostly in the form of posts. Those additional posts will also facilitate the integration of Croatian nationals to ensure geographical balance. The additional cost over the period 2014-2020 for all institutions is estimated at EUR 536 million (2011 prices).

Finally, the impact of these additional commitments needs to be added to the annual global payment ceilings on the basis of the same payment schedules used for the EU-27.

The resulting additional amounts are summarised in the table below. The proposed ceilings for EU-27 need to be adjusted accordingly.

9 The share of Croatia in the population and GNI of EU 27 amounts to 0.62%. This share was used for

establishing the amounts for 2013 in the Common Position on Chapter 33 – Financial and Budgetary provisions.

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Additional amounts for Croatia in the MFF 2014-2020

(EUR million - 2011 prices)

COMMITMENT APPROPRIATIONS 2014 2015 2016 2017 2018 2019 2020 Total2014-2020

1. Smart and Inclusive Growth 1 088 1 295 1 330 1 361 1 395 1 428 1 462 9 360of which: Economic, social and territorial cohesion 1 011 1 214 1 244 1 271 1 300 1 329 1 358 8 728

2. Sustainable Growth: Natural Resources 458 477 488 496 520 542 564 3 545of which: Market related expenditure and direct payments 118 134 148 163 193 222 249 1 227

3. Security and citizenship 88 31 31 31 31 31 31 273

4. Global Europe 0 0 0 0 0 0 0 0

5. Administration 80 76 76 76 76 76 76 536of which: Administrative expenditure of the institutions 80 76 76 76 76 76 76 536

6. Compensations 27 0 0 0 0 0 0 27TOTAL COMMITMENT APPROPRIATIONS 1 741 1 879 1 925 1 964 2 021 2 078 2 133 13 741

TOTAL PAYMENT APPROPRIATIONS 550 877 1 284 1 640 1 764 1 941 1 900 9 956

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3.2 Updating of the ceiling for Smart and Inclusive Growth and the sub-ceiling for Economic, social and territorial cohesion

The cohesion allocations in the Commission proposals were based on the latest available data when the proposals were adopted, i.e. the average regional GDP for the years 2006 to 2008, regional education and labour market data for the years 2007-2009, the average GNI for the years 2007 to 2009, as well as the Spring 2011 macro-economic forecast and accompanying medium term projections.

Following the publication of regional GDP data for 2009, regional education and labour market data for 2010, and of GNI data for 2010, these proposals now need to be updated: The three-year average determining eligibility shifts to 2007-2009 for regional GDP and to 2008-2010 for GNI. Furthermore, the maximum envelopes for those Member States subject to a cap of 2.5% of national GDP are now calculated on the basis of the Spring 2012 forecast and updated medium-term projections.

This results in the following changes to the overall allocation for the EU-27:



1. Smart and Inclusive Growth -1 015 -860 -610 -573 -675 -810 -963 -5 506of which: Economic, social and territorial cohesion -1 015 -860 -610 -573 -675 -810 -963 -5 506

3.3 Updating of the global ceilings for payment appropriations

The annual global ceilings for payments need to be updated on the basis of the most recent information available:

– The budget execution for the year 2011

– The adopted budget for the year 2012

– The draft budget for the year 2013 and the accompanying revised payment schedules

3.4 Updating of the overall annual ceilings for commitments and payments expressed as a percentage of EU-GNI

Finally, the overall annual ceilings for commitments and payments of the MFF table, as modified under sections 3.1 and 3.2 above, need to be expressed in terms of a percentage of EU-28 GNI, calculated on the basis of the Commission's Spring 2012 macro-economic forecast and updated medium-term projections.

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2011/0177 (APP)

Amended proposal for a

COUNCIL REGULATION

laying down the multiannual financial framework for the years 2014-2020

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the functioning of the European Union, and in particular Article 312 thereof, in conjunction with the Treaty establishing the European Atomic Energy Community, and in particular Article 106a thereof,

Having regard to the proposal from the European Commission10,

Having regard to the consent of the European Parliament11,

After transmission of the draft legislative act to national Parliaments,

Acting in accordance with a special legislative procedure,

Whereas:

(1) The annual ceilings on commitments appropriations by category of expenditure and the annual ceilings on payment appropriations established by this Regulation must respect the ceilings set for commitments and own resources in [Council Decision XXXX/XX/EU, Euratom].

(2) Taking into account the need for an adequate level of predictability for preparing and implementing medium-term investments, the duration of the financial framework should be set at seven years starting 1 January 2014, with an assessment of the implementation of the financial framework at mid-term. The results of this assessment should be taken into account during the last three years of the duration of the financial framework.

(3) Special instruments, the Emergency Aid Reserve, the European Union Solidarity Fund, the Flexibility Instrument, the European Globalisation Adjustment Fund, the Reserve for crises in the agriculture sector and the Contingency Margin, are necessary to allow the Union to react to specified unforeseen circumstances, or to allow the financing of clearly identified expenditure which could not be financed within the limits of the ceilings available for one or more headings as laid down in the financial framework. Specific provisions are therefore necessary to provide for a possibility to enter in the budget commitment appropriations over and above the ceilings set out in financial framework where it is necessary to use special instruments.

10 OJ C , , p. . 11 OJ C , , p. .

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(4) If it is necessary to mobilise the Union's budget guarantees for the loans provided under the Balance of Payment Facility and the European Financial Stabilisation Mechanism set out in Council Regulation (EC) No 332/2002 of 18 February 2002 establishing a facility providing medium-term financial assistance for Member States' balances of payments12 and in Council Regulation (EU) No 407/2010 of 11 May 2010 establishing a European financial stabilisation mechanism13, the necessary amount should be mobilised over and above the ceilings of the commitments and payments appropriations of the financial framework while respecting the own resources ceiling.

(5) The financial framework should be laid down in 2011 prices. The rules for technical adjustments of the financial framework to recalculate the ceilings and margins available should also be laid down.

(6) The financial framework should not take account of budget items financed by assigned revenue within the meaning of Regulation (EU) No [xxx/201x] of the European Parliament and of the Council of […] on the financial rules applicable to the annual budget of the Union14.

(7) Rules should be laid down for other situations that may require the financial framework to be adjusted. Those adjustments may be related to the implementation of the budget, macroeconomic conditionalities linked to the coordination of Member States' economic policiesexcessive government deficit, revision of the Treaties, enlargements, the reunification of Cyprus, or delayed adoption of new rules governing certain policy areas.

(8) The national envelopes for cohesion policyfor growth and employment are established on the basis of forecast for Gross Domestic Product (hereinafter "GDP") of spring 20121. Given the forecasting uncertainties and the impact for the capped Member States an assessment should be made in mid-term to compare the forecasted and actual GDP and its impact for the envelopes. In case the GDP for 2014-2016 differs more than +/- 5% from the forecast used in 20121 the envelopes for 2018-2020 for the Member States concerned need to be adjusted. The rules for this adjustment need to be provided for.

(9) The financial framework may need to be revised in case of unforeseen circumstances that cannot be dealt with within the established ceilings of the financial framework. It is therefore necessary to provide for revision of the financial framework in such cases.

(10) It is necessary to provide for general rules on interinstitutional cooperation in the budgetary procedure.

(11) In order to help the budgetary procedure to run smoothly, it is necessary to provide for the basic rules for the budgeting of the expenditure for the Common Foreign and Security policy and overall amount for the period covered by the financial framework.

(12) Detailed arrangements on interinstitutional cooperation in the budgetary procedure and on the budgeting of the expenditure for the Common Foreign and Security policy are

12 OJ L 53, 23.2.2002, p. 1 13 OJ L 118, 12.5.2010, p. 1. 14 OJ L .

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laid down in the Interinstitutional Agreement of […] 201x between the European Parliament, the Council and the Commission on cooperation in budgetary matters and sound financial management15.

(13) Specific rules are also necessary for dealing with large-scale infrastructure projects whose lifetime extends well beyond the period set for the financial framework. It is necessary to establish maximum amounts for the contributions from the Union's budget to those projects. Those requests should not have any impact on other projects financed from the Union's budget.

(14) The Commission should present a proposal for a new multiannual financial framework before 1 January 2018 to enable the institutions to adopt it sufficiently in advance before the start of the following financial framework. The financial framework laid down in this Regulation should continue to apply if the new financial framework regulation is not adopted before the end of the term of the financial framework laid down in this Regulation,

HAS ADOPTED THIS REGULATION:

Article 1

Multiannual Financial Framework

The multiannual financial framework for the period 2014 to 2020 (hereinafter the financial framework) is set out in the Annex.

Article 2

Compliance with the ceilings of the financial framework

1. The European Parliament, the Council and the Commission shall comply with the annual expenditure ceilings, set out in the financial framework, during each budgetary procedure and when implementing the budget for the year concerned.

2. The commitment appropriations may be entered in the budget over and above the ceilings of the relevant headings laid down in the financial framework where it is necessary to use the resources from the Emergency Aid Reserve, the European Union Solidarity Fund, the Flexibility Instrument, the European Globalisation Adjustment Fund, the Reserve for crises in the agriculture sector and the Contingency Margin in accordance with Council Regulation (EC) No 2012/200216, Regulation (EC) No 1927/2006 of the European Parliament and of the Council17, Regulation No xxxx/201x of the European Parliament and the Council18 and the Interinstitutional Agreement of […] 201x on cooperation in budgetary matters and sound financial management (hereinafter the Insterinstitutional Agreement).

15 OJ C … 16 OJ L 311, 14.11.2002, p. 3. 17 OJ L 406, 30.12.2006, p. 1. 18 OJ L , , p.

http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=en&type_doc=Regulation&an_doc=2002&nu_doc=2012

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32006R1927:EN:NOT

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3. Where a guarantee for a loan covered by the Union's budget according to Regulation (EC) No 332/2002 or Regulation (EU) No 407/2010 needs to be mobilised, it shall be over and above the ceilings laid down in the financial framework.

Article 3

Respect of own resources ceiling

1. For each of the years covered by the financial framework, the total appropriations for payments required, after annual adjustment and taking account of any other adjustments and revisions as well as the application of paragraphs 2 and 3 of Article 2, may not be such as to produce a call-in rate for own resources that exceeds the own resources ceiling set in accordance with [Decision XXXX/XX/EU, Euratom].

2. Where necessary, the ceilings set in the financial framework shall be lowered in order to ensure compliance with the own resources ceiling set in accordance with [Decision XXXX/XX/EU, Euratom].

Article 4

Technical adjustments

1. Each year the Commission, acting ahead of the budgetary procedure for year n+1, shall make the following technical adjustments to the financial framework:

(a) revaluation, at year n+1 prices, of the ceilings and of the overall figures for appropriations for commitments and appropriations for payments;

(b) calculation of the margin available under the own resources ceiling set in accordance with [Decision XXXX/XX/EU, Euratom];

(c) calculation of the absolute amount of the Contingency Margin provided for in Point 15 of the Interinstitutional Agreement.

2. The Commission shall make the technical adjustments referred to in paragraph 1 on the basis of a fixed deflator of 2% a year.

3. The Commission shall communicate the results of the technical adjustments referred to in paragraph 1 and the underlying economic forecasts to the European Parliament and the Council.

4. No further technical adjustments may be made in respect of the year concerned, either during the year or as ex-post corrections during subsequent years.

Article 5

Adjustment of cohesion policy envelopes

1. In its technical adjustment for the year 2018, if it is established that cumulated Gross Domestic Product ("GDP") of any capped Member State for the years 2014-2016

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has diverged by more than +/- 5 % from the cumulated GDP estimated in 20121 for the establishment of cohesion policy envelopes for Member States for the period 2014-2020, the Commission shall adjust the amounts allocated from funds supporting cohesion to the Member State concerned for that period.

2. The total net effect, whether positive or negative, of the adjustments referred to in paragraph 1 may not exceed EUR 3 billion.

3. The required adjustments shall be spread in equal proportions over the years 2018-2020 and the corresponding ceilings of the financial framework shall be modified accordingly.

Article 6

Adjustments related to implementation

When notifying the European Parliament and the Council of the results of the technical adjustments to the financial framework, the Commission shall present any proposals for adjustments to the total appropriations for payments which it considers necessary, in the light of implementation, to ensure an orderly progression in relation to the appropriations for commitments. The decisions on those proposals shall be taken before 1 May of year n.

Article 7

Adjustment of Structural Funds, Cohesion Fund, the European Agricultural Fund for Rural Development Fund and, the European Fund forMaritime and Fisheries Fund, the Asylum

and Migration Fund and the Internal Security Fund

1. In the case of adoption after 1 January 2014 of new rules or programmes under shared management forgoverning the Structural Funds, the Cohesion Fund, the European Agricultural Fund for Rural Development Fund and, the European Fund forMaritime and Fisheries Fund, the Asylum and Migration Fund and the Internal Security Fund, the financial framework shall be adjusted in order to transfer to subsequent years, in excess of the corresponding expenditure ceilings, of allocations not used in 2014.

2. The adjustment concerning the transfer of unused allocation for the year 2014 shall be adopted before 1 May 2015.

Article 8

Adjustments related to macroeconomic conditionalities linked to the coordination of Member States' economic policiesexcessive government deficit

In the case of the lifting of a suspension of budgetary commitments concerning the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund in the context of macroeconomic conditionalities linked to the coordination of Member States' economic policiesan excessive deficit procedure, the

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Council, in accordance with the Treaty and in compliance with the relevant basic act, shall decide on a transfer of suspended commitments to the following years. Suspended commitments of year n may not be re-budgeted beyond year n+2.

Article 9

Revision of the financial framework

1. In case of unforeseen circumstances the financial framework may be revised in compliance with the own resources ceiling set in accordance with [Decision XXXX/XX/EU, Euratom].

2. Any revision of the financial framework in accordance with paragraph 1 shall take into account the scope for reallocating expenditure between the programmes covered by the heading concerned by the revision, with particular reference to any expected under-utilisation of appropriations. Where feasible, a significant amount, in absolute terms and as a percentage of the new expenditure planned, shall be within the existing ceiling for the heading.

3. Any revision of the financial framework in accordance with paragraph 1 shall take into account the scope for offsetting any raising of the ceiling for one heading by the lowering of the ceiling for another.

4. Any revision of the financial framework in accordance with paragraph 1 shall maintain an appropriate relationship between commitments and payments.

5. Adjustments referred to in Article 3(2), 6, 7, 8, 10, 11, 11a and 16 also constitute a revision of the financial framework.

Article 10

Adjustment of the financial framework in case of a revision of the Treaties

Should a revision of the Treaties with budgetary implications occur during the financial framework, the necessary adjustments to the financial framework shall be made accordingly.

Article 11

Adjustment of the financial framework in case of enlargement and unification of Cyprus

If new Member States accede to the Union during the period covered by the financial framework, the financial framework shall be adjusted to take account of the expenditure requirements resulting from the outcome of the accession negotiations.

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Article 11a

Adjustment of the financial framework in case of reunification of Cyprus

In case of reunification of Cyprus during the period covered by the financial framework, the latter shall be adjusted to take account of the comprehensive settlement of the Cyprus problem and the additional financial needs resulting from reunification.

Article 12

Interinstitutional cooperation in the budgetary procedure

The European Parliament, the Council and the Commission (hereinafter the institutions) shall take any measures to facilitate the annual budgetary procedure.

The institutions shall cooperate in good faith throughout the procedure with a view to reconciling their positions. The institutions shall cooperate through appropriate interinstitutional contacts to monitor the progress of the work and analyse the degree of convergence at all stages of the procedure.

The institutions shall ensure that their respective calendars of work are coordinated as far as possible in order to enable proceedings to be conducted in a coherent and convergent fashion, leading to the final adoption of the budget.

Trilogues may be held at all stages of the procedure and at different levels of representation, depending on the nature of the expected discussion. Each institution, in accordance with its own rules of procedure, shall designate its participants for each meeting, define its mandate for the negotiations and inform the other institutions of arrangements for the meetings in good time.

Article 13

Financing of the Common foreign and security policy

The total amount of operating Common foreign and security policy (hereinafter "CFSP") expenditure shall be entered entirely in one budget chapter, entitled CFSP. That amount shall cover the real predictable needs, assessed in the framework of the establishment of the draft budget, on the basis of forecasts drawn up annually by the High Representative of the Union for Foreign Affairs and Security Policy, and a reasonable margin for unforeseen actions. No funds may be entered in a reserve.

Article 14

Contribution to the financing of large scale projects

A maximum amount of EUR 7 000 million in 2011 prices shall be available for the European satellite navigation programmes (EGNOS and Galileo) from the EU budget for the period 2014-2020.

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Article 15

Mid-term assessment of implementation of the financial framework

In 2016, the Commission shall present an assessment of the implementation of the financial framework accompanied, where necessary, by relevant proposals.

Article 16

Transition towards the next financial framework

Before 1 January 2018, the Commission shall present a proposal for a new multiannual financial framework.

If no Council regulation determining a new multiannual financial framework has been adopted before 31 December 2020, the ceilings and other provisions corresponding to the last year of the financial framework shall be extended until a regulation determining a new financial framework is adopted. If new Member States accede to the Union after 2020, the extended financial framework shall, if necessary, be adjusted in order to take into account the results of accession negotiations.

Article 17

Entry into force

This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at …,

For the Council The President

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ANNEX

Multiannual Financial Framework table (EU-28)



1. Smart and Inclusive Growth 64 769 67 015 68 853 70 745 72 316 74 386 76 679 494 763of which: Economic, social and territorial cohesion 50 464 51 897 53 177 54 307 55 423 56 474 57 501 379 243

2. Sustainable Growth: Natural Resources 57 845 57 005 56 190 55 357 54 357 53 371 52 348 386 472of which: Market related expenditure and direct payments 42 363 41 756 41 178 40 582 39 810 39 052 38 309 283 051

3. Security and citizenship 2 620 2 601 2 640 2 679 2 718 2 757 2 794 18 8094. Global Europe 9 400 9 645 9 845 9 960 10 150 10 380 10 620 70 000

5. Administration 8 622 8 755 8 872 9 019 9 149 9 301 9 447 63 165of which: Administrative expenditure of the institutions 7 047 7 115 7 184 7 267 7 364 7 461 7 561 51 000

6. Compensations 27 0 0 0 0 0 0 27

TOTAL COMMITMENT APPROPRIATIONS 143 282 145 021 146 400 147 759 148 690 150 195 151 888 1 033 235as a percentage of GNI 1.10% 1.09% 1.08% 1.08% 1.07% 1.06% 1.06% 1.08%

TOTAL PAYMENT APPROPRIATIONS 133 976 141 175 144 126 138 776 146 870 144 321 138 356 987 599as a percentage of GNI 1.03% 1.06% 1.06% 1.01% 1.06% 1.02% 0.96% 1.03%

Position of the Commission Services on the development of Partnership Agreement

and programmes in the Republic of CROATIA for the period 2014-2020

1

Table of Contents

INTRODUCTION ............................................................................................................... 2

1. MAIN CHALLENGES ................................................................................................... 3

2. PRIORITIES FOR FUNDING ....................................................................................... 9

2.1 Strengthening the competitiveness of the economy .............................................. 9

2.2. Increasing labour market participation, ensure better education and skills

and reduce poverty taking into account regional differences .......................... 10

2.3 Preserving and maintaining a healthy environment and protecting the

natural resources and heritage, and adapting to climate change ..................... 12

2.4 Strengthening the administrative capacity, enhancing an efficient public

administration and increasing the involvement of civil society and

social partners .................................................................................................. 13

3. SUCCESS FACTORS FOR EFFECTIVE DELIVERY .............................................. 14

4. PRIORITIES FOR EUROPEAN TERRITORIAL COOPERATION .......................... 16

ANNEX ............................................................................................................................. 17

A. MAXIMISING SUCCESS - ARRANGEMENTS FOR EFFECTIVE

PROGRAMMING AND DELIVERY ...................................................................... 17

B. ASSESSMENT OF FUNDING NEEDS IN RELATION TO THEMATIC

OBJECTIVES ........................................................................................................... 19

C. ADMINISTRATIVE ARRANGEMENTS .................................................................. 36

2

INTRODUCTION

Acknowledging the signature of the Accession Treaty between Croatia and the Member

States of the European Union, the Commission services have prepared this Position

Paper in anticipation of accession of the Republic of Croatia to the EU to enable timely

programming of EU funds’ investments for the 2014-2020 period.

The European Union faces the daunting challenge of emerging from the crisis and putting

economies back on a sustainable growth path. The strategy for recovery entails restoring

sound public finances, growth-enhancing structural reforms and targeted investments for

growth and jobs. For the latter, the European Structural and Investment (ESI) funds1 can

make an important contribution to sustainable growth, employment and competitiveness

and increase the convergence of less developed Member States and regions with the rest

of the Union.

To ensure that the ESI funds deliver long-lasting economic and social impacts, the

Commission has proposed a new approach to the use of the funds in its proposal for the

2014-2020 Multiannual Financial Framework2. Strong alignment with policy priorities

of the Europe 2020 agenda, macroeconomic and ex-ante conditionality, thematic

concentration and performance incentives are expected to result in more effective

spending. It is an approach that underlines the need for strong prioritisation and results

away from a culture of entitlement. The ESI funds will thus provide an important source

of public investment and serve as a catalyst for growth and jobs by leveraging physical

and human capital investment while they serve as an effective means to support the

implementation of the Country Specific Recommendations issued in the context of the

European Semester. The Commission will propose the first recommendations after

accession.

ESI Funds should aim at jointly fostering competitiveness, convergence and

cooperation by setting the right country-specific investment priorities. A general refocus

of spending towards research and innovation, support to SMEs, ICT, quality education

and training, inclusive labour markets fostering quality employment and social cohesion,

delivering the highest productivity gains, mainstreaming of climate change objectives

and shifting to a resource-efficient low carbon economy is necessary. In order to do so,

planning and implementation of ESI funds have to break through artificial bureaucratic

boundaries in the next programming period and develop a strong integrated approach

for mobilizing synergies and achieving optimal impact both within countries and across

borders. The Europe 2020 objectives must be mainstreamed across the different ESI

Funds, each of them bringing their contribution to smart, sustainable and inclusive

growth. Moreover, ESI Funds have a key role to play in supporting financial instruments

that can leverage private investment and thus multiply the effects of public finance. In

short, we need a carefully targeted and results oriented use of ESI funds that maximises

their combined impact.

The purpose of this position paper is to set out the framework for dialogue between the

Commission services and Croatia on the preparation of the Partnership Agreement

and Programmes which will start early in 2013. The paper sets out the key country

specific challenges and presents the Commission Services' preliminary views on the main

1The EU funds covered by the Common Strategic Framework (CSF), i.e. the European Regional

Development Fund (ERDF), the European Social Fund (ESF), the Cohesion Fund (CF), the European

Agricultural Fund for Rural Development (EAFRD) and the European Maritime and Fisheries Fund (EMFF) 2 COM (2011) 500 final, COM (2011) 398 final and COM (2012) 388 final.

3

funding priorities in Croatia for growth enhancing public expenditure. It calls for

optimizing the use of ESI Funds by establishing a strong link to productivity and

competitiveness enhancing reforms, leveraging private resources and boosting potential

high growth sectors, while emphasizing the need to preserve solidarity within the Union

and ensuring the sustainable use of natural resources for future generations. There is also

a need to concentrate future EU spending on priority areas to maximise the results to be

obtained, rather than spreading funding too thinly. EU funding should also be used to

fund EU level priorities and to ensure that Croatia can draw full benefits from its

emerging EU membership. Therefore the Commission proposes to group and limit EU

funding to the key challenges outlined in this position paper. National public spending

should not only be used to co-finance projects but also to finance additional investments

which are complementary and linked to EU funded projects in particular at regional and

local level.

The position paper takes account of the lessons learnt during the 2007-2013 IPA

programming period, the accession negotiations commitments, as well as the policy

dialogue in the framework of "Joint Assessment of Croatia's employment policy

priorities" and the "Joint Inclusion Memorandum", the Commission's legislative

proposals for 2014-2020. It should be noted however that preparing and implementing

the ESI funds will require greater efforts from the Croatian political and administrative

levels.

In a context of fiscal discipline, this position paper encourages Croatia and its regions to

develop and implement medium-term strategies capable of facing the challenges ahead,

notably globalisation, while helping preserve the European social model. Moreover, it

provides for a flexible framework for Croatia and its regions to react and refocus

European, national and local resources on creating growth and employment so that fiscal

sustainability and growth-friendly policies go hand-in-hand, also dealing with structural

and institutional problems in Croatia and its regions and across its national borders in its

territorial and geographical context, including as per the EU Strategy for the Danube

Region, and also in the Adriatic and Ionian context, in order to have maximum impact.

Finally it invites Croatia and its regions to exploit to the maximum potential synergies

between the ESI Funds and with other sources of EU funding in a strategic and integrated

approach. This includes developing cooperation perspectives with neighbouring countries

and regions as widely as possible.

1. MAIN CHALLENGES

Croatia's economy has been in recession since 2008 which has lowered the level of GDP

by more than 10%. The European Commission's most recent Economic Forecast projects

GDP to decline by 1.9% in 2012. When the international economy picked up in 2010 and

2011, the Croatian economy was unable to stage an export-led recovery. Croatia

continued to lose its market share due to a narrow export base and insufficient

competitiveness. Foreign direct investments declined, indicating an unfavourable

investment environment in Croatia. Declining imports have narrowed the current account

deficit to around 1% of GDP. This, in turn, has stabilised gross external debt as a share of

GDP, but at a very high level (105% in mid-2012) which remains a key vulnerability of

the Croatian economy. In the context of declining economic activity domestic

inflationary pressures have subsided in recent years. The number of employed persons

has fallen by about 10% since 2008, pushing up the unemployment rate to close to 15%

in 2012. The unemployment rate would have increased even more if the labour force had

not been shrinking by about 1% annually.

4

The fiscal deficit of general government has risen steadily since the beginning of the

recession to 5.1% of GDP in 2011. Gross consolidated debt has increased from 29.3% of

GDP at the end of 2008 to 50.5% in mid-2012. The authorities are making efforts to

contain the fiscal deficit by aiming for a reduction of public expenditures, but raising the

efficiency of public expenditure remains a major challenge. Interest rates are relatively

high to the detriment of investment activity, although the central bank conducts a

relatively accommodative monetary policy while maintaining exchange rate stability.

Regional disparities in Croatia have multiple dimensions. The most obvious disparities

still appear in war affected areas which remain largely underdeveloped and among the

ones with the highest needs of investments. Large areas are still contaminated by

explosive devices. Due to the specific shape of Croatia and its numerous islands, access

to certain areas is difficult, costly and slow, causing isolation. Part of the Dubrovnik-

Neretva County is disconnected by land from the rest of the country. Regional disparities

have widened over years due to the concentration of the economic activity in Zagreb and

in the capital city region. Migration trends to the fast-developing regional urban centres

contribute to the growing urban/rural divide in other regions as well.

There are important challenges that need to be addressed by Croatia to contribute to the

Europe 2020 targets3:

Europe 2020 headline targets

National

target

Current

Level

3% of the EU's GDP to be invested in R&D/innovation 0.73%

20% greenhouse gas emissions reduction compared to 1990

levels4

20% of energy from renewables 14.6%

20% increase in energy efficiency

75% of the 20-64 year-olds to be employed 57%

Reducing early school leaving to less than 10% 4.1%

At least 40% of 30-34–year-olds completing tertiary or

equivalent education 24.5%

Reducing the number of people in or at risk of poverty or

exclusion by at least 20 million

Croatia's most pressing challenges are related to Under-development of knowledge

based factors of growth and insufficient connection of the growth hubs; Low labour

market participation, particularly of youth, inefficient education system and a

difficult social situation; Protecting the environment, preserving the natural

resources and heritage and adapting to climate change and Inefficient public

governance on central and local level and weak involvement of civil society and

social partners, which are all interrelated.

Under-development of knowledge based factors of growth and insufficient

infrastructure

Croatia is lagging behind in knowledge based factors of growth and in more general

terms, in optimising the support for R&D and innovation and in strengthening the

3 The Table presents the latest Eurostat data for Croatia in comparison to EU 2020 targets. National targets

will be provided by Croatia in the economic programme due in April 2013. 4 30% if the conditions are right

5

knowledge triangle. The country has one of the lowest R&D expenditure compared to the

EU (0.7% of GDP) with high portion coming from public sources (nearly 50%). The

public-private co-operation in the R&D&I sector is hindered by administrative

restrictions, lack of joint projects, lack of transnational linkages, underdeveloped

academic entrepreneurship and low absorption capacities of the business sector. The

efficiency of the R&D & innovation expenditure is a major weakness, as it is rarely

transferred into commercially viable knowledge. Science and innovation policy is

primarily focused on public science. Low-tech sectors dominate the economic structure.

Significant disparities can be observed with regard to regional distribution of R&D

expenditure, with a concentration of the R&D performance in the North-western Croatia.

Unfavourable business environment is discouraging the business development and

competitiveness. Croatia loses market share due to a narrow export base and insufficient

competitiveness. Croatia has developed a wide range of services for SMEs but these are

still largely oriented towards low value added support. Although Croatia scores high in

the region in the access to finance for SMEs, obtaining start-up capital including venture

funds and private equity is still difficult. Cumbersome administrative environment

represents further obstacles to SME growth. Support to the modernisation and

restructuring of enterprises e.g. in shipbuilding and steel sectors, including the upgrade of

the production process, is not sufficiently developed. The agricultural sector is

characterised by low productivity; it provides for 15% of total employment but represents

only 5.5% of gross value added of the country. The farm structure is mostly characterised

by a high degree of fragmentation of ownership5, while connections between agricultural

producers are very weak with few cooperatives and no producer groups in agriculture and

forestry. The fisheries sector is also facing structural challenges and limited organisation

of the production side. In the context of growing internal demand for fisheries products,

(notably in the seaside during touristic period) and exports, opportunities exist to increase

value added by improving production and marketing planning by producers

organisations. At the same time coastal communities will face difficulties to find

alternative sources of income.

The transport and ICT networks are unbalanced and hinder competitiveness. A

focus has been given to the development of motorways during the past 15 years. All

other modes of transport require quality improvements while road safety still represents a

challenge. The railway network has long sections which are not electrified or which are

in single track. European Rail Traffic Management System is not yet deployed along the

main lines to ensure interoperability with neighbouring countries. The navigability of the

Danube and Sava does not sufficiently meet international navigation standards. River

Information Services are not developed. Multi-modal facilities are still at an early stage.

The share of container transport is still low compared to other European ports. Transport

links within cities' agglomerations do not enable sufficient mobility.

Companies are overall well connected to basic ICT infrastructures while the economy

would benefit from an improved access to high speed (next generation access) broadband

networks6. Households are still significantly below the EU average (49% compared to

EU average of 68% in 2011). The targets set by the current Broadband Development

Strategy 2012-2015 are not aligned with the targets of the Digital Agenda for Europe.

5 Half of Croatia's 195,000 agricultural holdings have less than 3 hectares of land. Only 4 per cent have

more than 20 hectares. Often land holdings are scattered over several locations. 6 Reduce digital divide (DAE targets - 100% basic broadband coverage by 2013; 100% and NGA

infrastructure coverage with speeds 30Mbps and above by 2020; 50% or more of European

households have subscriptions above 100Mbps by 2020) 90%*, and 50%* and NA respectively (by

2015) 49%, and 15%* and NA respectively)

6

There is insufficient coverage, accessibility, and use of information and communication

technologies (ICT) in rural areas in particular.

Low labour market participation, particularly of youth, inefficient education system

and a difficult social situation

Since 2008 the labour market in Croatia has been deteriorating and regional disparities

have increased. At 57% in 2011 the employment rate is much below the EU average of

68.6%. Young people are in a particularly unfavourable position on the labour market

(youth unemployment increased to 36.1% in 2011), as are women, older workers and the

long term unemployed. Women also face difficulties in entering the labour market due to

insufficient child care services. There are significant differences at the regional level,

with the smallest gender activity gap in in North-western Croatia and the largest in the

least-developed Central and Eastern Croatia. Finally, national minorities, in particular

Roma and Serbs, and persons with disabilities face severe labour market integration

difficulties. Active labour market policy measures have limited coverage despite a recent

increase in participation. Their contribution to the employability of the participants

remains rather insufficient. Labour market institutions are facing the increasing number

of unemployed and the persistence of undeclared work.

Labour market performance will not be improved without addressing the mismatch of

labour market supply and demand. In the field of education, there are substantial

systemic needs regarding both quality and access aspects. Roma children still suffer from

particularly severe exclusion from the education system. The link to labour market needs

is insufficient, and particularly regarding vocational education and training, the lack of

adequate practical training provision significantly reduces the employability of persons

with such education. The share of the population with a tertiary degree is still below the

EU average (despite a positive trend in attainment level). Low participation in lifelong

learning in Croatia remains a very demanding challenge (2.2% in 2011 and the EU

average 8.2%), with a particularly low proportion of older people.

Further improvement is needed to combat poverty and social exclusion. In Croatia,

there is limited access to appropriate and quality community-based services to promote

active inclusion, again with significant regional differences. Croatia is among the EU

countries with the highest at-risk-of-poverty rate. The material deprivation rate is also

well above the EU average. Groups that are the most exposed to poverty are older people

particularly women, children up to 18 years, single households, in particular single

households with elderly members and unemployed men. With the financial crisis there is

also a worsening trend in the risk of poverty among better educated, younger and

economically active people. Poverty amongst the Roma is much higher than the rest of

the population. Croatia has also relatively poor public health indicators with risk factors

such as smoking, obesity and the overconsumption of alcohol representing an important

disease burden. The health of vulnerable groups such as the elderly, children, people with

disabilities and the Roma minority is the most badly affected. Croatia is facing limited

availability of care, especially in rural areas, on islands, and in small towns, due to the

structural lack of healthcare workers and other barriers to access such as expense,

distance or waiting lists.

National minorities, in particular Roma and Serbs, tend to face general discrimination.

There is a decline in the overall numbers of ethnic minorities in the Croatian civil service

and their participation is not progressing towards the targets set in the national plans. 7

7 The Ministry of Public Administration adopted a recruitment plan which sets a target for minority

employment of 5.5% in the state administration and in local government by 2014.

7

Disparities in living standards among the regions remain a pertinent issue. Vulnerability

to poverty is primarily associated with rural areas where the poverty rate levels are

significantly higher than in urban areas. In fisheries-dependent communities, especially

those located on islands, there is a need for economic diversification.

Challenges related to protecting the environment, preserving the natural heritage and

adapting to climate change

Large investment projects are needed in order for Croatia to meet the agreed targets in

the fields of waste and water management, where transitional agreements have been

granted. The country does not yet meet the EU environmental standards in rehabilitation

and closure of numerous non-compliant landfills and construction of new ones,

remediation of hazardous industrial waste landfills and hazardous waste management.

Croatia is one of the richest European countries in terms of biodiversity and nature and it

will be an important challenge in the coming years to protect and develop these

invaluable resources as well as to ensure their sustainable utilisation. Croatia is under the

commitment to ensure the designation, protection, restoration and management of

Natura2000 sites and other high nature value sites, including the extensive management

of important agricultural and forest habitats. The most serious threat to wild species in

Croatia is degradation and loss of habitats, including as a result of agriculture causing

habitat fragmentation. Large areas of high nature value grasslands and pastures are at risk

of being abandoned or taken into intensive agricultural use. Rural Croatia has great

potential for nature tourism but it needs developing. Water availability in Croatia is

sufficient, but its spatial and annual distribution is unfavourable. The environmental

changes caused by natural phenomena, but also by the impact of human activity, threaten

water quality. Croatia should also prevent overfishing.

Renewable energy sources still do not have an appropriate share in the energy structure.

The current share of renewable energy sources is 14.6% (against the target of 20% by

2020). Investments in renewable energy sources and energy efficiency are hindered by

cumbersome and lengthy administrative procedures discouraging potential investors,

individual households as well as the public sector investments. At the same time, Croatia

is dependent on few energy sources, in particular on gas and oil import.

Croatia is on track in fulfilling its Kyoto commitments. Over the past decade, greenhouse

gas (GHG) emissions had a slight increase towards 2007 and kept decreasing afterwards

mostly due to a decreasing industrial output caused by the recession. Energy use (fuel

combustion) is the main source of emissions in Croatia. Non-ETS (Emissions Trading

System) sectors such as transport, agriculture, households and waste contribute to the

emissions. Croatia is exceeding its existing ammonia (NH3) 2010 emission ceiling in the

Gothenburg Protocol by about 25%8.

Agriculture and forestry are at risk from negative impacts related to a hotter and drier

climate, such as droughts and wild fires. In general Croatia's urban areas and countryside

are not sufficiently resilient to climate change and disasters. Forests cover about 47% of

the land in Croatia. Forest fires pose a major challenge. Further, preventive flood

protection measures are not sufficiently developed. Finally, in view of constantly

booming tourism special attention should be paid to preserving the unique sea and

maritime eco-system of the Adriatic Sea.

8 According to preliminary data

8

Inefficient public governance on central and local level and weak involvement of civil

society and social partners

The need for more efficient public administration in Croatia is widely recognised and has

been the focus of reforms in recent years. While the State Administration Reform

Strategy 2008-2011 has been finalised, measures foreseen have been limited in scope,

covering state (central level) administration only and not addressing sufficiently local

levels. Croatia recently introduced sectorial legislation addressing civil servants and a

process of harmonisation of this sectorial legislation with the General Administrative

Procedures Act is taking place. However, challenges of the public administration are

currently not addressed in a strategic and comprehensive manner. The judiciary sector

remains an area that requires substantial further improvements as regards effectiveness,

efficiency and transparency.

The structure of the Croatian public administration remains complex. Public

administration at all levels is still not sufficiently effective, transparent and accountable,

and the risk of corruption is present. Decentralisation remains an issue and there is no

clear strategy elaborated yet to speed up the process. A structural problem of relatively

high turnover still exists in the public administration in Croatia and the capacity of civil

service calls for substantial improvement. The current performance evaluation system is

regarded as a formal obligation with no bearing on the career progression of civil

servants. New salary system and career development strategies are required as to ensure

merit-based promotion and reward mechanisms as well as to decrease employee turnover

and to attract qualified personnel. Training and career development systems are not

sufficiently up-to-date, which hampers the establishment of a modern and service-

oriented and professional civil service. The State School for Public Administration lacks

sufficient capacity to implement training programmes for civil servants, officials of local

and regional self-government and public officials. The recruitment of its staff is not yet

finalised.

Coordination between the key stakeholders at national, regional and local levels remains

weak. Many local and regional administrations have not yet developed a comprehensive

cooperation strategy with civil society. Civil society organisations in Croatia face

multiple challenges due to: lack of staff and expert capacities, lack of information and of

sustainable financial sources. Involvement of civil society organisations in the policy

making process is still rather limited. Social partner organisations are also facing

difficulties as regards staff capacity and the level of social dialogue in Croatia.

9

2. PRIORITIES FOR FUNDING

The ESI Funds will be one of the most important instruments to tackle the main

development challenges for Croatia and to implement the Europe 2020 strategy. For rural

development and fisheries, priorities for funding should also contribute to the Common

Agricultural and Common Fisheries Policies. Targeted funding should harness growth in

Croatia's blue economy. To this end the intervention from the ESI Funds needs to be

concentrated on a limited number of priorities. Experience shows that thematic

concentration allows for an increase in effectiveness of public interventions by reaching

a critical mass with a real impact on the socio-economic situation of a country and its

regions. Prioritisation is of particular importance in times of fiscal consolidation.

Four complementary and mutually reinforcing funding priorities are proposed hereunder

in line with country-specific challenges9. They reflect the importance of funding needs

and potential contribution to growth and jobs. There is no ranking in the presentation of

the funding priorities.

These are the priorities the Commission would like to co-finance in Croatia for the next

programming period 2014-20. Sufficient flexibility is built into the new programming

architecture to respond to new challenges and unexpected events, which allow for

reprogramming on justified grounds.

2.1 Strengthening the competitiveness of the economy

Strengthening Croatia's innovation profile through smart specialisation

A smart specialisation strategy should identify innovative and high-growth sectors in

particular in industry/business that will be the priority investment sectors for the ESI

funds. Supportive actions would include better coordination between different bodies

responsible for innovation policy, the promotion of clusters, the stimulation for the

private sector's participation in RDI, the support to joint university-industry projects and

to the commercialisation of innovation. The sectors concerned are not restricted to "high-

tech" but could also include "traditional" ones, such as the agriculture and forestry and

creative industries. The research and innovation capacities in emerging and rapidly

growing markets should be particularly addressed. The transnational cooperation

(cooperation and transfer of experience, development of new markets…) should be fully

exploited.

Supporting the modernisation and competitiveness of enterprises

ESI funds should be invested in entrepreneurship, access to finance for SMEs and further

development of higher value-added business support services. Enterprises should be

supported in the start-up stage and during their lifecycle aiming at an increased

productivity and competitiveness, development of new products and processes, up-taking

of ICT and achieving more efficiency in terms of energy and resource consumption

involving innovative and greener production processes. Modernisation and restructuring

of enterprises should be pursued through introducing of up-to date technologies,

providing training, re-skilling and up-skilling, upgrading the management and

organisation systems in the supply chain, as well as improving the market organisation to

9 The thematic objectives in the proposed regulations and their link to the funding areas are outlined in

Annex I.

10

drive competitiveness and value-adding capabilities. Targeted business support could be

developed in industrial areas under reconversion in view of creating conditions for new

investment in new activities. Competitiveness should also be particularly addressed in the

wider context of the EU Strategy for the Danube region where Croatia is co-coordinator

of the priority area.

In rural areas, the local development should be fostered and economic diversification

should be supported. There is a considerable potential to increase productivity through

restructuring and modernisation of agricultural sector and measures to increase value

added through processing and marketing of agricultural products and diversification into

non-agricultural sectors. Fisheries and aquaculture sectors offer potential for the future

development of the Croatian blue economy. The creation of new aquacultures farms and

the modernisation of the existing ones should facilitate the increase of fisheries

production, the products diversification and the increase of sanitary and environmental

standards. Insufficiently consolidated sector organisation should obtain proper support to

develop producer's groups.

The extension and upgrading of the transport and ICT infrastructure

Interventions should concentrate on the development of a balanced transport network,

within the framework of a comprehensive strategic transport plan. Special attention

should be placed on eliminating bottlenecks and completing missing transport links,

especially to the neighbouring countries and important transport nodes. Priority should be

given to the railway sector (completion of the TEN-T Core Railway Network10

), the

interoperability and connectivity with neighbouring countries (ERTMS along

international lines). There is a need for a modal shift in the transport sector from road to

rail and clean transport in order to contribute to the decrease of greenhouse gas emissions

in the transport sector. In the road sector the emphasis should be placed on improving

road safety. Urban mobility systems need to be developed in major cities, in particular

in the Zagreb agglomeration. Accessibility within urban areas and their connectivity with

the city agglomeration need to be developed based on an urban development plan,

integrating all modes of transport. Sustainable and clean urban traffic solutions are to be

given a priority. Intelligent transport systems have to be deployed or upgraded for all

modes of transport.

The access to, and use of high quality ICT networks and services need to be promoted

in particular in remote and isolated island/rural areas while observing the rules of

competition policy.

2.2. Increasing labour market participation, ensure better education and skills and

reduce poverty taking into account regional differences

Significantly enhance the labour market participation of the most vulnerable groups,

particularly women, older workers, and the long term unemployed

Specific groups, namely young people, women, older people, the long term unemployed,

national minorities (particularly Roma and Serbs) need more support to integrate into the

labour market. Sufficient resources from the ESI Funds should be allocated for

promoting and increasing the employability of these groups, for providing targeted

10

The TEN-T network for Croatia following the Guidelines in force (Decision No 661/2010/EU) has been

defined. The revision of those Guidelines is currently in legislative procedure and the proposal of the

Commission indicatively includes the Comprehensive TEN-T network of Croatia. Following the

accession of Croatia the Core TEN-T network will have to be defined.

11

and tailored training, and ensuring the acquisition of competences and skills in line with

labour market demand. Adapting workplaces and facilitating longer working lives and

active and healthy ageing would increase the participation of older workers in the labour

market. Due priority should be given to Roma people and national minorities. ESI Funds

should be allocated to measures to support better labour market integration of women.

Active labour market policy measures should be better targeted and tailored for specific

needs of groups. To improve the outcome of active labour market policy measures, ESI

Funds could also be used to support regular evaluations of the measures. Regional

differences should be taken into account when investing in increasing labour market

participation. ESI Funds should be ensured for modernisation and strengthening of labour

market institutions with a view to improving the quality of services provided.

Increase the employment of young people

ESI Fund investment should concentrate specifically on the sustainable integration of

young people into the labour market, aimed at increasing the employment of young

people. Investments in more individualised active labour market measures, including in

increased access to quality apprenticeships and internships, possibly in the framework of

a "youth guarantee scheme" should be ensured. Specific focus is needed for young

people not in education and employment. Promoting self-employment and

entrepreneurship, and ensuring vocational education and training aligned with labour

market needs is necessary. ESI Funds should support activities consisting of the

provision of career guidance services and job matching in partnership with local

stakeholders are also needed.

Improve skills level of the population, address the challenge of matching labour

market skills demand and supply, improve vocational education and training outcomes

and enhance participation in the education system

ESI Funds should invest in improving the quality, efficiency and openness of the

education system, including the tertiary and equivalent education in order to

increase participation and attainment levels. ESI funds should support the

development and implementation of strategic education reform measures, in particular

with regard to increasing teaching standards, the quality of teaching methods, and

modernising curricula. Substantial investments to support the access and participation in

education of the various national minorities, and in particular the Roma, are also needed.

ESI Funds should further support the upgrading of higher education programmes,

promoting partnerships between higher education institutions with all relevant

stakeholders and improving accessibility of higher education need to be improved.

Investments in vocational education and training should include measures to provide

practical training, including apprenticeship schemes and incentives for employers to

provide more training. In order to significantly increase the participation in the lifelong

learning for all groups, and in particular for older persons, adequate programmes should

be designed and implemented with the ESI funds support.

Improve social inclusion of the most vulnerable groups, including elderly, children,

persons with disabilities and Roma

ESI Funds should increase investment in active inclusion to reduce the number of people

at risk of poverty. Persons with disabilities including those with mental disorders should

also be supported. This requires multi-faceted policy approaches. Firstly, integrated

employability measures, including individual support and counselling tailored to the

needs of people at risk of poverty should be introduced. Secondly, sufficient support,

including through the availability and accessibility of high quality early childhood

education and care services, should be provided so that parents can integrate better into

the labour market, and to give their children a better start in education (especially with

12

regard to the Roma community). Since Central and East Croatia have the highest

concentration of poor and vulnerable groups, and since the bulk of poorer people live in

rural areas, investments should be particularly focused in these disadvantaged regions.

Reduce discrimination

In addition to the active inclusion measures there is an overall need in Croatia to reduce

widespread discrimination against certain groups. ESI Funds should allocate sufficient

resources to combat discrimination based on sex, racial or ethnic origin, religion or

belief, disability, age or sexual orientation. Appropriate measures should be further

enhanced to address those who may still be subject to threats or acts of discrimination.

Additional incentives should be introduced to further increase the participation of ethnic

minorities in the civil service at the national, regional and local level. As regards access

to the labour market, start-up business counselling and entrepreneurship activities

targeting unemployed national minorities should be continued. To fight against

discrimination, the implementation with ESI support of awareness rising campaigns and

intercultural activities should be introduced at national, regional and local levels.

Ensure high quality, accessible and decentralised social and health services and invest

in basic services for the rural population

Access to high quality community-based social support and healthcare is limited. There

are significant regional differences in access between urban and rural areas. Therefore

investments should focus on expanding and diversifying such services and making them

accessible to all. Further support is needed to establish a "one stop shop" for social

services and for inter-connecting health administrations at different levels, and to further

develop electronic services (such as e-health) for citizens. The transition from the

institutions to community-based services, particularly for children, the elderly, homeless

people such as people with disabilities and those in need of mental care and other

vulnerable groups should be ensured. Investments in basic services should be used

proactively to address poverty and promote economic and social development in rural

areas in line with the specific needs of the areas concerned. A particular focus is needed

on general economic and social development in order to address the many-sided

challenges facing these areas.

2.3 Preserving and maintaining a healthy environment and protecting the natural

resources and heritage, and adapting to climate change

Substantial investment from ESI funds should be made to improve the efficiency of the

waste management sector and ensure compliance with the environment standards set by

EU acquis. Likewise, improving the efficiency of the water management sector and

compliance with the environmental standards and the acquis should be supported by ESI

funds. Integrated Water Management policy is to be prepared.

Protection of biodiversity, soil and water (including via the promotion of sustainable

farming and forestry systems) and measures to promote ecosystem services including

NATURA 2000 sites and green infrastructures should also be supported by ESI funds.

An important starting element will be the preparation of studies and inventories to select

Natura 2000 sites, management planning, capacity building and awareness-raising. The

investment from ESI funds should as well be used for enhancing the protection,

valorisation and management of the natural resources and heritage. When possible, the

tourist potential and other business potential of the natural heritage (including cultural

heritage) should be considered, to contribute to the economic sustainability of

preservation of such heritage. In order to avoid negative consequences of intensive

agriculture on biodiversity and nature, it is necessary to ensure: proper land management

of grasslands and pastures, particularly (semi)natural ones, as well as water management,

13

including protection of rivers. Efforts will be needed to reduce nutrient runoff into water

courses which flow into marine or fresh waters at risk of eutrophication.

The reform of the Common Fisheries Policy should bring about sustainable fishing for

maritime and fisheries sectors and foster the economic development of fishing

communities. Investment need to untie the potential of the sea and coast in order to

develop the blue economy and promote economic growth and sustainable jobs. To

reconcile sustainable development of aquaculture with touristic activities, the ESI funds

should support maritime spatial planning and integrated coastal zone management.

Croatia needs to devote adequate ESI investment to support a low-carbon economy, to

stimulate the use of renewable energy in order to reduce GHG emissions, including off-

shore and on-shore wind energy as well as solar and biomass energy, looking especially

at the potential of innovative technologies. Diversification of energy sources will help to

reduce Croatia's dependency in particular on gas and oil import, as will building of

interconnections with EU markets.

Croatia needs to enhance the climate change adaptation and improve the prevention of

damages caused by adverse weather conditions, and continue strengthening its

prevention, preparedness, and response to disasters. Special attention should be paid to

flood, drought and water management, and particularly to fire prevention and restoration

measures in forests. The irrigation systems for agriculture could be developed.

These priorities should also be addressed in the wider context of the cross-border and

transnational cooperation and the EU Strategy for the Danube region.

2.4 Strengthening the administrative capacity, enhancing an efficient public

administration and increasing the involvement of civil society and social partners

Strengthening the capacity of the public administration, promoting good governance as

well as strengthening the capacity of civil society and social partners remain core

concerns for Croatia. The capacity of the specialised administration both at national,

regional and local level should be ensured to implement the reforms and measures to

address the various policy challenges (in particular the administrations directly

contributing to the implementation of the Europe 2020 strategy), and at the same time,

the risk to ESI funds implementation and absorption due to inadequate staff resources

should be avoided. The present suboptimal absorption levels in IPA Funds in Croatia are

due to a large extent to inadequate administrative capacity.

This calls for concentrating ESI investments on the institutional capacity-building

thematic objective.

Develop an effective and efficient public administration

Addressing both central administration and local level administration, sufficient ESI

Funds should be devoted to setting up and implementing the legal framework

underpinning an efficient, reliable and service-oriented public service. The full

development and implementation of a new salary and career development system should

be a priority for future funding so as to ensure merit-based promotion and reward

mechanisms as well as to decrease employee turnover and to attract qualified personnel.

Civil servants' professionalism should further be improved through modernising training

and career development. Adequate capacities for training delivery, for example by

strengthening support to the National School of Administration and ensuring training

centres at the regional and local levels should be developed through ESI funds support.

Measures aiming at simplification, streamlining and transparency of the administration

procedures should be supported.

14

An overall change of management style should be introduced with a view to modernising

the administration and strengthening its capacity for evidence-based policy-making and

effective service delivery. Quantified impact assessment and other evidence-based

approaches such as systemic evaluations are essential for designing and implementing the

reforms. The ESI Funds should support the development of good governance in Croatia

also through action on prevention and fight against corruption.

As regards the effectiveness of the judicial system, adequate resources should be

dedicated to addressing weaknesses in administrative capacity, the functioning of

relevant institutions (inter alia Judicial Council) and implementing reforms. The funding

should focus on the improvement of the efficiency and quality of justice procedures,

including written procedures, small claims, insolvency procedures, and enforcement of

decisions. It should promote the alternative dispute resolution and support training

measures, provision of expertise and international exchange of information.

Strengthen the capacity of social partners and civil society organisations to be involved

in policy-making and policy-delivery

Given the relative weakness of the NGO sector and the lack of organised capacities of

social partner organisations in Croatia, ESI Funds should allocate sufficient resources to

improve the capacity of stakeholders, social partners and NGOS, and to help them

become actively involved in policy processes at all levels. ESI funds should support

further improvement of the social dialogue process by ensuring specialised training for

social partners to enhance their organisational capacities and by raising the awareness of

the importance of social dialogue in Croatia.

3. SUCCESS FACTORS FOR EFFECTIVE DELIVERY

Together with financial consolidation structural reforms play a key role in enhancing

the overall efficiency thereby the growth potential of the Croatian economy. They are

also a key condition for the successful implementation of the ESI funds which can only

have optimal impact, if an appropriate policy, legal and administrative framework is in

place.

Human resources are an essential element of successfully designed and delivered

national and regional policies and programs, including those financed from ESI funds.

External training, at-work training and efficient mentoring by senior staff are necessary

for enhancing the human resources capacity and should receive sufficient allocation from

ESI funds. This includes training provision on areas such as budget programming,

monitoring and evaluation. Cooperation with some other Member States might bring

interesting practices to learn from.

The new Common Provisions Regulation will set out ex-ante conditionalities which are

preconditions relating to the effective and efficient use of EU funds and which should

be fulfilled by the time a programme is approved. The Commission will formally

examine the consistency and adequacy of the information provided by Croatia in the

framework of its assessment of the Partnership Agreement and programmes.

Where ex-ante conditionalities are not fulfilled by the time of submitting the Partnership

Agreement to the Commission, Croatia will need to lay down a series of actions to be

taken at national and regional level and a timetable for implementing them. All ex-ante

conditionalities need to be fulfilled by the deadline agreed and at the latest within two

years of the adoption of the Partnership Agreement by 31 December 2016. The detailed

actions relating to the fulfilment of the conditionalities will be set out in the relevant

operational programmes.

15

Based on current experience, the Commission Services have identified a number of ex-

ante conditionalities critical for successful implementation of the above funding

priorities. The Croatian authorities need to take actions to fulfil the pre-conditions for

successful spending in each of these areas:

The existence of a strategy for reinforcing the Member States' administrative

efficiency including public administration reform.

develop a national or regional research and innovation strategy for smart

specialisation;

develop a comprehensive national transport plan;

design a national digital strategy and operational national broadband plan

The existence of a national and/or regional policy framework for lifelong learning

in line with Union level policy guidelines;

Active and labour market policies are designed and delivered in coherence with

the Employment guidelines and the Broad Guidelines for the economic policies

of the Member States and of the Union regarding enabling conditions for job

creation;

Labour market institutions are modernised and strengthened in accordance with

the Employment guidelines;

ensure the effective implementation of EU environmental “acquis” in the sectors

of waste management (Directive 2008/98/EC) and water management (Directive

2000/60/EC) as well as horizontal provisions concerning environment impact

assessment and strategic environment impact assessment (Directives

85/337/EEC; 2001/42/EC);

transposition into national law of Renewable Energy Directive (2009/28/EC);

in fisheries, set up administrative capacity to comply with data collection

obligations for fisheries management (having in mind the future shift from direct

to shared management) and to implement the Union control, inspection and

enforcement system.

Develop a multiannual strategic plan for aquaculture;

the existence of a mechanism which insures effective implementation and

application of EU State Aid law

The existence of appropriate statistical systems and result indicators

Ensure that the appropriate tendering capacity, templates and procedures are in

place.

16

4. PRIORITIES FOR EUROPEAN TERRITORIAL COOPERATION

European Territorial Cooperation programmes should follow a strategic and

ambitious approach, based on the major challenges of the border regions and programme

areas, taking into account the experiences from previous programming periods, links with

national policies and other Community-funded programmes, and an increased sense of

partnership. The use of the European Groupings for Territorial Cooperation could be

considered when planning and implementing cooperation approaches.

In the cross border co-operation programmes, Croatia should draw up with each of its

neighbouring countries approaches addressing specific needs, including the involvement

of private partners. Actions should concentrate on removing the main bottlenecks in

transport improving accessibility, in particular in the various maritime borders, on

removing the existing barriers to labour mobility, on increasing the support to the

research and development, favouring exchanges of know-how and joint innovative

projects focussing among other on to the health sector. Promoting climate change

adaptation and risk prevention and management should also be tackled at transnational

level. The level of competitiveness of SMEs remains insufficient; there is a strong need

to promote SME’s internationalisation.

As regards the Adriatic and Ionian maritime approaches, European territorial co-

operation should aim at improving coherence, coordination and alignment of policies and

instruments, including country-specific ones, having an impact on the maritime economy.

The objectives and orientations agreed under the Adriatic and Ionian Sea basin strategy11

should in particular be taken into account: Maximizing the potential of the blue economy;

Healthier marine environment; A safer and more secure maritime space; Sustainable and

responsible fishing activities.

Within the EU Strategy for the Danube Region, Croatia should promote greater

coherence between the Strategy and programming of ESI interventions and transfer of

good practice in relation to research and innovation, energy efficiency and risk

prevention and management. Croatia should ensure strong participation in the

competitiveness area, as well as devoting sufficient resources and attention to the role of

Priority Area Coordinators and Steering Groups overall.

11

COM/2012/713

17

ANNEX

The annex contains the arrangements for effective programming and delivery, assessment

of funding needs in relation to thematic objectives and assessment of specific aspects of

administrative capacities.

A. MAXIMISING SUCCESS - ARRANGEMENTS FOR EFFECTIVE PROGRAMMING AND

DELIVERY

Experience from previous programming periods indicates several factors affecting

effectiveness of investment, in particular the need for strategic orientation and

concentration, the need to avoid fragmentation of investments, projects insufficiently

embedded in national systems, weak response to the actual needs, and low European

value added. A general shift towards more coherent and innovative approach is necessary

in order to demonstrate clearly the impact on attaining the Europe 2020 objectives. For

future investments in areas listed below the Commission expects specific justification

regarding their usefulness for attaining the Europe 2020 objectives and respect of the

following considerations:

Due to poor impact of such types of investments of pre-accession funds, the

funding of business zones should not be financed from ERDF unless an obvious

contribution to economic growth in line with specialisation strategies can be

proven.

Investment in local roads should only be supported when contributing to the

development of deprived rural or urban areas, or where they address a specific

need in the agriculture or forestry sectors, provide necessary links to the

motorway and expressway network, or fill gaps in cross-border links.

With regard to the effective implementation and absorption of ESI funds, challenges of

the inefficient public governance on central and local level and weak involvement of civil

society and social partners should be addressed in due time.

Support needs to be granted in accordance with EU state aid rules. Financing should

address real market failures and be limited to the minimum necessary, so that funds are

used efficiently, overcompensation is avoided and distortions of competition are limited.

Adequate resources should be dedicated to developing good quality statistical indicators

essential for monitoring the implementation of public policies targets and Europe 2020

targets.

The proposed 2014-2020 legislation for the ESI funds offers additional flexibility to set

up programmes in each Member State to best match their institutional set-up.

Cooperation at all levels is key to achieving quality of spending.

Annex I of the Commission's amended proposal for the Common Provision Regulation12

includes elements of the Common Strategic Framework and sets out different options for

integrated approaches to programming, to achieve coordination and synergies during

implementation, which Member States are encouraged to explore.

For rural development, the option to draw up thematic sub-programmes within a rural

development programme provides the opportunity to devote closer attention to particular

needs.

12

COM (2012) 496 final of 11.9.12.

18

The most suitable architecture will have to be developed in partnership with stakeholders

in Croatia and in negotiations with the Commission. Therefore the Croatian authorities

are invited to set out the action taken to involve the partners in the preparation of the

Partnership Agreement. All the relevant stakeholders at national, regional and local level

should be included when programming and implementing the instruments to ensure

thematic concentration, avoid thematic overlaps and strengthen synergies while

improving co-ordination and the strategic nature of the programme.

In setting up the programmes, synergy should be sought not only between the five ESI

funds but also with other EU instruments such as Erasmus for All, Horizon 2020 and

Programme for Social Change and Innovation, the LIFE programme, Creative Europe

Programme and Connecting Europe Facility.

Integrated Territorial Investments (ITI) in Cohesion Policy allow the implementation of

parts of programmes in a cross-cutting manner and can provide flexibility below the

programme level to implement integrated actions. Where this mechanism is selected,

Croatia should define for each ITI an appropriate governance structure and in particular

designate a management body. Allocations should be defined in the programmes for the

ITI.

The Partnership Agreement should set out the contribution to the integrated approach for

territorial development; including both macro regional and sea-basin approaches as well

as– where appropriate – a planned integrated approach to sustainable urban development.

Community-led Local Development (CLLD) offers an integrated bottom-up approach in

response to complex territorial and local challenges through the involvement of local

communities. Croatia is invited to explain its approach as regards CLLD across the ESI

Funds indicating the main challenges, objectives and priorities, the type of territories, the

role of local action groups and of different ESI Funds and coordination mechanisms.

Croatia should also indicate the preparatory support for local actors.

Financial instruments

Financial instruments could play an important role in the delivery of EU policy

objectives by providing more flexible and sustainable forms of financing and attracting

private sector investors with a significant multiplier effect on public resources and

improving access to financing for ESI beneficiaries. They contribute to making financing

of public policies more effective and sustainable, thus helping Member States to face

their long-term challenges and increasing the long term impact of the policy.

With the support of the 2014-2020 ESI funds Member States are encouraged to use

financial instruments more widely in sectors where they are particularly suitable and

where an ex-ante assessment has established evidence of market failures or sub-optimal

investment situations. In addition to the extensive use of these instruments to support

investments in SMEs, they should also be more widely used for investments in projects

which have a demonstrated capacity to pay back the whole or part of the resources

invested, including for promoting integrated urban development operations and for

promoting energy efficiency. In Croatia, it is recommended that financial instruments are

also used in areas of agriculture for supporting farm modernisation and tourism.

19

B. ASSESSMENT OF FUNDING NEEDS IN RELATION TO THEMATIC OBJECTIVES

The following sections present the Commission Services' view on priorities for ESI

Funds for Croatia. They have been developed on the basis of the Commission Services

in depth country analysis and selected from the 11 thematic objectives, which stem from

the Commission proposal for the Common Provision Regulation13

for ESI Funds adopted

by the Commission on 6 October 2011. These 11 thematic objectives translate the Europe

2020 strategy into operational objectives to be supported by the ESI Funds.

The 11 thematic objectives are common for cohesion, rural development and the

maritime and fisheries policies; they ensure that interventions under these policies are

aligned towards the achievement of joint objectives, those of Europe 2020. They provide

a menu of possible funding objectives for the whole of the EU. According to each

Member State's specific situation a more focussed selection is then made in agreement

with the national authorities. The challenges and funding areas for Croatia correspond to

the following thematic objectives:

Funding priorities Related thematic objectives

Strengthen the competitiveness of

the economy

Strengthening research; technological development

and innovation

Enhancing the competitiveness of small and

medium-sized enterprises, the agricultural sector and

the fisheries and aquaculture sector

Promoting sustainable transport and removing

bottlenecks in key network infrastructures

Enhancing access to, and use and quality of ICT

Increase labour market

participation, ensure better

education and skills and reduce

poverty taking into account

regional differences

Promoting employment and supporting labour

mobility

Promoting social inclusion and combating poverty

Investing in education, skills and life-long learning

Preserving and maintaining a

healthy environment and

protecting the natural resources

and heritage, and adapting to

climate change

Protecting the environment and promoting resource

efficiency

Supporting the shift towards a low-carbon economy

in all sectors

Promoting climate change adaptation, risk

prevention and management

Strengthening the administrative

capacity, enhancing an efficient

public administration and

increasing the involvement of

civil society and social partners

Enhancing institutional capacity and an efficient

public administration

13

COM(2011)615 final/2; http://ec.europa.eu/regional_policy/what/future/proposals_2014_2020_en.cfm#1

20

FUNDING PRIORITY: Strengthen the competitiveness of the economy

The objectives of the funding priority Strengthening the competitiveness of the

economy will be achieved primarily by thematic objectives Strengthening research;

technological development and innovation, Enhancing the competitiveness of small and

medium-sized enterprises, the agricultural sector and the fisheries and aquaculture sector

and Promoting sustainable transport and removing bottlenecks in key network

infrastructures and also Enhancing access to, and use and quality of ICT.

Thematic objective: Strengthening research; technological development and innovation

For this thematic objective the funding priority translates into the following priorities and

specific objectives reflecting country specific challenges to be supported by the ESI

funds:

1. Develop RD&I excellence and promote centres of competence, in particular those

of European interest

strengthen connections between the entrepreneurial, institutional, academic and

research communities; design and implement collectively a smart specialisation

strategy (national and/or regional levels) which includes the identification,

promotion and investment in a set of high-growth research and innovation sectors

in particular in industry/business

Promote qualified research workforce, in particular in knowledge-intensive

services high-technology sectors

stimulate the demand-pull from the public sector to encourage industry and

academia to invest in new R&I for solutions fitting public service needs

promote networking & clusters, joint research activity between private companies

as well as between the private and public sector and foster the university-industry

cooperation in a set excellence and high-growth sectors (see above), including

transnationally;

stimulate adoption and diffusion of new technologies and products, including

through public procurement

2. Promote business R&I investment, support applied research and technological

transfer to help companies develop more innovative products/ processes/ marketing/

services, and diversify the national/regional economy through high-growth activities

develop/reinforce technological platforms and facilities, including technology

centres/offices, sciences parks, with a clear focus on enhancing applied research

in excellence and high-growth sectors;

invest in the commercial exploitation of new ideas and research results and the

creation of more knowledge-intensive businesses through targeted and high-level

services tailored at the needs of SMEs at their various stages of development and

along the innovation value chain, in particular in key enabling technologies

(development of new product, pilot solutions and processes, advanced

manufacturing capabilities);

develop adequate, attractive and sustainable financial instruments for R&D

companies, in particular risk and seed capital

promote knowledge transfer in the agricultural and forestry sectors , including

support for advisory services and structures for cooperation among farmers and

other actors concerning the introduction of new technologies and innovative

practices in agriculture and forestry.

21

Assuring performance of investments by ESI Funds under this thematic objective

requires meeting the relevant ex-ante conditionalities. In addition the following general

considerations would improve governance and delivery:

Strengthen the research system: (1) avoid fragmentation of budgetary and

physical resources (including identifying centres of excellence); (2) emphasize

integration to the international scientific community; (3) properly manage human

resources, including promoting qualified research workforce and career

development based on academic results (4) ensure a results-based management of

programmes through programmatic agreements and external evaluations (as

opposed to per headcount) ; (5) encourage and ease patenting.

Adopt and implement a research & innovation strategy (ex-ante conditionality), with a clear prioritization and orientation to results, to develop a long-term

development vision and ease the design of large scale programmes that would

involve private business cooperation and stimulate their investments in R&D.

This strategy should include (1) an assessment whether the current institutional

framework for R&D incentivizes economic agents (researchers, research

organization and the business sector); (2) the strategy should include a) a mapping

and appraisal of the role and efficiency of existing "infrastructure" for research

commercialization and business development and identify clearly the still needed

ones, in view of ensuring their sustainability and the optimal allocation of funds.

A market demand and supply for the associated services, and the assurance that

necessary conditions for the sustainability of these infrastructures and equipment

are in place should be prerequisites for any funding decision of the

refurbished/new equipments and/or infrastructures concerned.

Improve policy-making, implementation, monitoring, evaluation, and

governance of the national research and innovation system. The existing

national and regional R&D and innovation infrastructures and capacities may be

upgraded and completed on the basis of national roadmaps and linked to EU

priorities (ESFRI): (1) ensure better coordination between different bodies

responsible for innovation policy; (2) review the institutional framework of

national innovation system; ensure high-level oversight of the system to promote

coherence; possibly consolidate all technology-based federal programme in one

responsible and experiences agency (3) ensure full participation of relevant

stakeholders in policy making (4) achieve a high degree of transparency and

accountability of policies, including the adoption of monitoring and evaluation

mechanisms; (5) integrate to the extent possible, actions identified by the

Innovation Union flagship.

Cooperate actively in R&D and innovation initiatives at macro regional level

(incl. Western Balkans, Adriatic, Danube regions), which provides a critical

mass for ensuring the necessary resources and market. This concerns in particular

the design and implementation of the Regional Research and Development

Strategy for Innovation in the Western Balkans, as well as the Danube and

Adriatic strategy and cooperation (Danube Research Area). The initiatives may

relate to (1) the development of cross-border regional clusters in sectors of

competitive advantage based on knowledge and innovation; (2) the establishment

of competitive regional centres of excellence in the fields of strategic interest for

the region; (3) promoting the development of regional research infrastructures;

(4) facilitate the training, mobility and cooperation of scientists within the region.

22

Further develop the capacity and competence of its farm advisory services to

ensure sufficient coverage of all aspects required under the Common Agricultural

Policy, in particular issues linked to cross-compliance and sustainable

management and climate action in agriculture and forestry.

The thematic objective should be implemented in line with the priorities

identified in the ERA- European Research Area Communication adopted by the

Commission on 17 July 2012 and in synergy with Horizon 2020 and other EU

instruments.

Investments in research and innovation should take into account EU wide

strategies such as the Strategic Energy Technology (SET) Plan14

roadmaps in

the field of energy, where a coordination effort with other Member States in

pooling resources should be made in order to increase the level of excellence and

to avoid duplication.

Actions under this thematic objective may contribute, if relevant, to related interventions

identified under thematic objective aiming at enhancing the competitiveness of SMEs,

and investing in education 15

.

Thematic objective: Enhancing the competitiveness of small and medium-sized

enterprises, the agricultural sector and the fisheries and aquaculture sector



funds:

1. Promoting entrepreneurship

the development of an entrepreneurship educators’ network, which would

generate greater awareness of the importance of the entrepreneurship agenda

while build intelligence on enterprise skills and share good practice

support to lifelong entrepreneurial learning strategy with a particular focus to

women and young people.

2. Enhancing the competitiveness of SMEs by providing high-quality business

support

facilitate the economic exploitation of new ideas, and fostering the creation of

new firms and start-ups;

develop high-quality business services, in particular in the areas of business

transfer, access to new markets, business strategy and monitoring, improved

resource efficiency, innovation management capacity, and take-up of more

innovative products/ processes/ marketing/ services,

facilitate the development of SMEs in emerging and specific areas, such as new

forms of tourism, culture, creative industries, eco-innovations and eco-efficiency,

including coordination with public procurement to speed up the market take-up.

Promote eco-innovation among SMEs, in particular through: supporting

development of clusters in green technologies, including marine and maritime

14

http://ec.europa.eu/energy/technology/set_plan/set_plan_en.htm 15

Thematic objectives 3 and 9 according to the draft Regulation.

http://ec.europa.eu/energy/technology/set_plan/set_plan_en.htm

23

sectors; addressing the key hurdles to the deployment of eco-innovations and

non-technological innovations;

Harness the economic potential of the seas and coasts in areas with growth

potential such as tourism and biotechnology, in line with the Blue Growth

initiative. Knowledge, data collection and sharing should be extended

accordingly.

develop new business models, including new value chains and marketing

organisation, in particular to facilitate internationalisation (e.g. through providing

training and practical guidance on procedures and enabling access to financial

instruments), and exports across borders, in the Internal Market and beyond

develop the markets across borders

create appropriate conditions for new investments and productive activities in

former industrial sites, including with the development of targeted business

support.

3. Facilitating SME's access to finance

provision of start-up capital, guarantees, loans and mezzanine and seed capital

through financial instruments and support for the development of business plans.

The support may concern the private equity and venture capital funds in

particular. Targeted market analyses proving the need of the SMEs as well as the

analysis of the absorption capacity of financial intermediaries are perquisites to

the intervention of Structural Funds. Particular effort should be dedicated to new

and science-based companies.

Promote general development and economic diversification via support for small

enterprises and local development in rural areas.

4. Modernisation of the agricultural, fisheries and aquaculture sector

Support for restructuring and modernisation of agricultural holdings in order to

increase their competitiveness and productivity as well as for investments in

processing, marketing and development of agricultural products, promoting

participation in quality schemes (e.g. designation as organic producer) in order to

increase value added in the sector.

Promote the development and market integration of small farms which have a

potential for improving productivity and expanding or diversifying their

production.

Promote the establishment of producer organisations and other forms of

cooperation between farmers as well as support for farm risk management, local

markets and short supply chains in rural areas to create better development

opportunities for small farmers.

Provide special support for farmers establishing themselves for the first time in

order to facilitate restructuring and generational renewal in the agricultural sector.

increase the productivity of fisheries and aquaculture sectors; , provide support

for business development, business skills and entrepreneurship in the fisheries

and aquaculture in order to drive competitiveness, improve the overall

performance and profitability of operators, foster innovation and value adding.


requires meeting the relevant ex-ante conditionalities. In addition, the following general


24

1. The effective removal of obstacles of business environment and to the growth of

SMEs remains an essential conditions for the success of the interventions supported

by the Cohesion policy. Further efforts are need regarding the costs and time involved in

company registration and notification procedures, the streamlining of bankruptcy

procedures, the regulatory impact assessments and the establishment of permanent

consultation fora. The corporate governance in state-owned enterprises should be

improved to reduce interference in commercial decisions

2. With regard to the agricultural sector:

- Target beneficiaries not yet generating adequate levels of revenue and avoid

deadweight effects. In the processing sector investments should in particular target

innovation, productivity and internationalization. Consider channelling support through

financial instruments, such as loan guarantee funds or credit funds.

- Further promote the consolidation of land holdings in the agricultural sector so as to

reduce fragmentation of ownership and create the basis for more efficient land

management in the sector.


identified under thematic objectives aiming at Strengthening research; technological

development and innovation; employment and social inclusion16

.

Thematic objective: Promoting sustainable transport and removing bottlenecks in key

network infrastructures



funds:

1. Developing comprehensive, high quality and interoperable railway system

Modernise existing railways corridors and develop new network elements if

necessary, including the deployment of ERTMS systems and ensuring

interoperability.

Modernisation of the rolling stock linked to the modernisation of the corridors.

2. Supporting a multimodal Single European Transport Area by investing in the

Trans-European Transport Network (TEN-T) network

Developing well-functioning intermodal transport system by investing in

construction of multi-modal and inter-operable corridors and nodes (including

connecting inland waterway port, maritime ports and airports with other modes,

especially railways) as well as logistic centres, including intelligent transport

systems, especially along the TEN-T core corridors.

Facilitating the shift of road freight transport to other transport modes, notably

rail, through intermodal platforms, and the use of intelligent transport systems.

Removing of bottlenecks in inland waterways Danube and Sava, while

minimising substantial modifications to riverbeds, and supporting investments to

render fleets more environmentally friendly as well as investment in River

Information Services.

16

Thematic objectives 1, 8 and 9 according to the draft Regulation.

25

3. Enhancing regional mobility through connecting secondary and tertiary nodes to

TEN-T infrastructure

Improving regional accessibility by improving road safety.

Improving local accessibility as part of integrated local development initiatives

(CDLL or ITI).

4. Developing environment-friendly transport systems and promoting sustainable

urban mobility;

Developing intelligent, sustainable and low-carbon urban transport systems to

improve mobility within cities. Improving connections with the city

agglomerations based on an urban development plan, integrating all modes of

transport. Coordinate and harmonize different transport modes and service

providers.

Implementing measures to increase public awareness on advantages of public and

non-motorised modes of transport (e.g. training, education, eco-driving, corporate

mobility scheme development).




Improve factual basis for strategic planning of transport infrastructure by using an

appropriate traffic model, which considers real and projected demand with an

efficient and effective integration of different modes of transport.

Introduce a sound system for evaluation and prioritisation of projects and

consider seeking support from JASPERS.

Ensure financial sustainability of investments through the preparation and

implementation of an appropriate maintenance strategy (applying the "polluter

pays" and "user pays" principles). Revenues from pricing and charging systems

and not EU funds should be used for financing maintenance costs.

Reform the inefficient tariff system in the railway sector to ensure adequate

resources for maintenance; increase the competitiveness of railway transport.

Actions under this thematic objective may contribute, if relevant, to interventions

identified under thematic objectives aimed at investing in low-carbon economy. 17

.

Thematic objective: Enhancing access to, and use and quality of ICT



funds:

Creation, improvement, and expansion of basic and high-speed (next generation

access) broadband infrastructure, in particular in underserved regions where such

access cannot adequately provided by the market;

Promote the development of ICT applications and services in support of the

sustainability and competitiveness of targeted areas. This could include the rural

areas (for example e-content relevant for the development of rural tourism) and

island areas.

17

Thematic objective 4 according to the draft Regulation.

26

Enhance the digital competence and use of ICT by farmers and other small rural

businesses, for example through training measures.

Development of ICT and e-government applications (including e-health services),

to respond to economic and societal challenges as well as enhancing innovation,

the modernisation of public administration and access to the services by citizens,

and enterprises.

Assuring performance of investments by ESI funds under this thematic objective requires

meeting the relevant ex-ante conditionalities in advance of 2014. In addition, the

following general considerations would improve governance and delivery:

Establish a digital growth plan with SWOT analysis, as well as an operational

National Broadband Plan designed to advance basic broadband as well as NGA

coverage and take-up;

Improve the management and technical capacities of institutions in charge of

promoting and implementing ICT policy, and enhance their coordination;

Allocate the necessary national budget for maintenance and operation of the ICT

infrastructure


identified under thematic objective aiming at an efficient public administration18

.

18

Thematic objective 11 according to the draft Regulation.

27

FUNDING PRIORITY: Increase labour market participation, increase education and

skills and reduce poverty by taking into account regional differences

The objectives of the funding priority will be achieved primarily by thematic objective

Promoting employment and supporting labour mobility, as well as thematic objectives

Promoting social inclusion and combating poverty and Investing in education, skills and

life-long learning.

Thematic objective: Promoting employment and supporting labour mobility



funds:

1. Access to employment for job-seekers and inactive people, including local

employment initiatives and support for labour mobility:

increase employment of specific groups: young people, women, older workers,

persons with disabilities and the long term unemployed, including Roma and

other national minorities;

modernise and ensure the administration capacity of labour market institutions

implement active labour market policy measures, such as targeted and tailored

training for the most disadvantaged groups on the labour market;

adaptation of work places and labour market practices as to facilitate longer and

healthier working lives and promote employability and provide employment and

training measures supporting active and healthy ageing;

promote further development of supporting good quality, sustainable services

such as child care services and extra-curricular activities in view of increasing the

employment rate of women. Promote innovative ways of work organisation

(flexible working time, part time work, teleworking etc.);

promote partnerships between national minorities' associations and other non-

governmental organisations and labour market actors dealing with employment of

vulnerable groups; support start-up counselling and entrepreneurship activities for

the national minorities;

promote local and regional partnership for employment to better target the needs

of the local and regional labour market.

2. Sustainable integration of young people not in education, employment, or

training (NEET) into the labour market:

tailor measures of active labour market policy measures to the specific needs of

young people

further implementation of "youth guarantees" by offering further education,

(re)training and activation measures to every young person, in particular for young

unemployed people NEET and medium and high skilled young NEET people to be

ensured;

provide traineeship and apprenticeships schemes and practical vocational

training;

improve partnerships between vocational education and training (VET) secondary

schools and economic/social/labour actors at the local and national level;

provide targeted career guidance services for young people;

28

3. Promoting social inclusion, poverty reduction and economic development of rural,

coastal and fisheries areas

facilitate diversification, creation of small enterprises and job creation in rural

areas

promote economic diversification and develop employment opportunities in the

fisheries and coastal areas

Assuring the performance of investments through the ESI Funds under this thematic

objective requires meeting the ex-ante conditionalities. In addition, the following general


Programmes that are results-oriented, with defined target groups and proper

management and sufficient administrative capacity.

A strategic approach should be ensured.


identified under thematic objectives aimed at competitiveness of SMEs and agricultural,

fisheries and aquaculture sectors; social inclusion and combating poverty and investing in

education, skills and lifelong learning19

.

Thematic objective: Promoting social inclusion and combating poverty



funds:

1. Active inclusion

reduce the number of people at risk of poverty and exclusion through

strengthening measures to help people at risk, including to return to employment

or to receive further training; promote digital literacy; targeting the long term

unemployed and other most vulnerable and marginalised/disadvantaged groups,

in particular children, elderly, women, Roma and persons with disabilities;

provide integrated employability measures such as individualised support and

counselling tailored to the need of specific groups; further develop social

entrepreneurship;

2. Combating discrimination based on sex, racial or ethnic origin, religion or belief,

disability, age or sexual orientation

Introduce actions targeting people at risk of discrimination, notably national

minorities;

raise awareness and promote closer cooperation among different institutions to

promote intercultural activities and to fight discrimination, particularly at the

workplaces;

ensure active partnership with NGOs;

3. Enhancing access to affordable, sustainable and high-quality services, including

health care and social services of general interest

enhance access to affordable, sustainable high-quality health and social services

including services for school care, out of school care, child care and long term

care services and care of dependant persons such as elderly;

19

Thematic objectives 3, 9 and 10 according to the draft Regulation.

29

reduce inequalities in access to health care and health information faced

especially by vulnerable groups;

address preventable lifestyle-related risk factors and chronic diseases;

support the transition from institutional care to community-based care for

children, elderly, and other vulnerable groups; ensure further training and career

development opportunities of staff working in care services;

promote linkage of social and health services

4. Promoting social inclusion, poverty reduction and economic development of rural

areas

fostering local development in rural, coastal and fisheries areas

Assuring the performance of investments through the ESI Funds under this thematic




The cost-effectiveness and adequacy of social and unemployment benefits, whilst

minimizing disincentives to work and traps effects, to be improved;

ESI Funds should respond to particular needs and conditions of vulnerable persons to

counteract any kind of discrimination on the labour market.


identified under thematic objectives aimed at ICT; competitiveness of SMEs and

agricultural, fisheries and aquaculture sectors; employment and labour mobility and

investing in education, skills and lifelong learning 20

.

Thematic objective: Investing in education, skills and lifelong learning



funds:

1. Improving the quality, efficiency and openness of tertiary and equivalent

education with a view to increasing participation and attainment levels

review higher education programmes to make them more relevant for labour

market needs;

promote partnerships/networks between social partners, enterprises, education

and training institutions/providers in order to improve the transfer of information

on labour market needs;

improve accessibility to education in different regions and for the groups of

people most at risk, in particular Roma.

2. Enhancing access to lifelong learning, upgrading the skills and competences of

the workforce and increasing the labour market relevance of education and

training systems

deliver reform measures with a view to improving the quality and relevance of the

education system at all levels and increase access (in particular of ethnic

minorities)

20

Thematic objectives 2, 3, 8 and 10 according to the draft Regulation.

30

increase participation in lifelong learning, in particular for older workers, the low

skilled and the long term unemployed;

promote the attractiveness of vocational education and training, including

campaigns and skills competitions, and support young people in compulsory

education to get acquainted with vocational trades and career possibilities;

adapt vocational education and training (VET) systems to labour market

demands, by developing work-based learning in VET, including apprenticeship

schemes, and encouraging companies to take on more trainees;

Support the development of skills and competences needed on the labour market

Promote the recognition of competences acquired through non-formal and

informal education.

3. Promoting knowledge transfer and innovation in the agriculture, forestry,

maritime and fisheries sectors

Support maritime education, science and research and the qualification and skills

relevant to Croatia's blue economy

Fostering life-long learning and vocational training in the agricultural and forestry

sectors.

Assuring the performance of investments under the ESI Funds under this thematic



Programmes that are results-oriented, with defined target groups and proper

management and sufficient administrative capacity.



identified under thematic objectives aimed at research, technological development and

innovation; ICT; competitiveness of SMEs and agricultural, fisheries and aquaculture

sectors; low carbon economy; protecting the environment and promoting resource

efficiency; employment and labour mobility, and inclusion and combating poverty 21

.

21

Thematic objectives 1, 2, 3, 4, 6, 8 and 9 according to the draft Regulation.

31

FUNDING PRIORITY: Preserving and maintaining a healthy environment and

protecting the natural resources and heritage, and adapting to climate change

The objectives of the funding priority will be achieved primarily by thematic objective on

Protecting the environment and promoting resource efficiency, Supporting the shift

towards a low-carbon economy in all sectors and Promoting climate change adaptation

and risk prevention.

Thematic objective: Protecting the environment and promoting resource efficiency



funds:

1. Addressing the significant needs for investment in the waste sector to meet the

requirements of the environmental acquis:

Solid waste: Invest in measures contributing to the compliance to the Landfill

Directive. As a transition period was granted in the Accession Treaty until end of

2018 this area should be one of the top priorities; (2) New or updated Waste

Management Plans for both municipal and dangerous waste under the 2008 Waste

Framework Directive have to be drawn up to implement the waste hierarchy

foreseeing the appropriate infrastructure projects and actions; (3) In addition,

Waste Prevention Programmes should be drawn up by 2013 and foresee all the

necessary prevention actions, that are also eligible for EU co-financing.

2. Addressing the significant needs for improvement in the water sector to meet the

requirements of the environmental acquis:

As transition periods were granted in the field of urban wastewater treatment in

the Accession Treaty this area needs to be treated as a priority. The final

implementation date is foreseen for 2023 with intermediate targets in 2018 and

2020. Invest in assessing the water quality throughout Croatia as well as in

measures facilitating the reach of full compliance with the urban wastewater

treatment directive

Transition period was granted in the Accession Treaty until end of 2018 to

comply with the Drinking water directive thus this sector needs to be considered

as a priority sector.

Croatia needs to prepare to apply an integrated water management policy in order

to ensure sufficient quantities of water of appropriate quality for current and

future needs. Investments should be promoted to increase the efficiency in water

use by agriculture.

3. Protecting biodiversity, soil and water and promoting ecosystem services

including NATURA 2000 and green infrastructures:

Enhance the protection, valorisation and management of the natural resources and

natural and cultural heritage, while considering its tourist potential and other

business potential when possible

Remediation of high-risk sites contaminated by land mines (including

brownfields) that pose a barrier to investments and economic development

Reduce the impact of agriculture on the environment by promoting

environmentally friendly farming systems, such as organic or integrated farming,

32

reducing inputs of fertiliser and pesticides, and maintaining natural buffers and

wildlife corridors in intensively farmed regions

Ensure due respect for the environment and nature by providing relevant training

and advisory services for farmers

Introduce measures to reduce nutrient run-off into water courses which flow into

marine or fresh waters at risk of eutrophication.

Reduce ammonia emissions from agriculture via support for improved animal

housing systems, manure storage, and fertiliser application

Invest in the preparation of studies and inventories to select Natura 2000 sites,

management planning, stakeholder consultation, capacity building of the

authorities responsible for nature protection as well as awareness raising among

different stakeholders (investors, farmers, fishermen etc.) and wider public

Invest in restoration and preservation of habitats, including the implementation of

measures related to Natura2000 sites and other high nature value areas (including

marine protected areas under MSFD). Support farmers and foresters experiencing

disadvantages due to restrictions in Natura2000 areas

Support the extensive management of high nature value grasslands and pastures

Support the sustainable management and use of forests

support the transition to environmentally sustainable fisheries (take measures to

achieve Maximum Sustainable Yield and support discard ban, collect data for

resource conservation purposes, ensure proper control of the implementation of

CFP rules) as well as eco-innovation (innovation reducing impact on

environment) and aquaculture with high level of environmental protection

Support marine litter initiatives and measures against invasive species

Support the implementation of the Marine Strategy Framework Directive

(MSFD), in close cooperation with bordering countries

Evaluate and identify any overcapacity in its fishing fleets in order to phase it out

Invest in restoration of coastal and marine zones' natural, socio-economic and

cultural resources, better management of urban sprawl, defence/ protection/

mitigation from climate change (e.g. fighting coastal flooding and erosion)

Support the use of integrated maritime policy tools for sustainable growth and

competitiveness22

as well as the sustainable exploration and exploitation of

seabed resources




Investments in unsustainable transport and hydropower energy infrastructure pose

a threat to many river ecosystems which have kept their natural or near-natural

character, while the reshaping of the major Croatian water courses especially the

Danube might easily lead to irremediable ecological catastrophe. Croatia should

therefore ensure that all investments in this sector are subject to Environment

22

Such as marine knowledge, Maritime Spatial Planning and Integrated Coastal Zone Management, and

integrated maritime surveillance.

33

Impact Assessment and Nature Impact Assessment and otherwise are in line with

EU nature legislation.

Data availability on water quality, setting up of the relevant monitoring system,

preparation to the fast designation of the Nitrate Vulnerable Zones as well as the

related Action Programmes is to be ensured

Develop adequate training measures, advisory services and measures to promote

cooperation between relevant actors in order to promote sustainable practices and

management of habitats in agriculture and forestry

Actions under this thematic objective should be coordinated with interventions under

thematic objectives related to competitiveness of SMEs, agriculture, fisheries and

aquaculture; Low carbon economy; Climate change adaptation, risk prevention and

management, and Sustainable transport 23

.

Thematic objective: Supporting the shift towards a low-carbon economy in all sectors



funds:

promoting the production and distribution of renewable energy sources;

promoting energy efficiency and the use of renewable energy and technologies

reducing GHG emissions in SMEs;

supporting energy efficiency and renewable energy use in public infrastructures

and in the housing sector;

Support investments in the on-farm production and use of renewable energy as

well as the promotion of renewable energy more broadly in rural areas. The

contribution of forestry to bio-energy production should also be promoted.

Enhance the carbon retention capacity of soils and forests and reduce greenhouse

gas emissions from farm operations.




- Environmental sustainability should be taken into consideration when promoting

the production and use of biomass for energy purposes to avoid harmful

intensification of forestry management, land take for bio-fuel and biomass, short

rotation coppice and monoculture.

- Attention should be paid to simplifying the administrative procedures and

ensuring easy access to information in order to facilitate investments in renewable

energy, including grid access where necessary


thematic objective aimed at protecting the environment24

.

23

Thematic objectives 3, 4, 5 and 7 according to the draft Regulation. 24

Thematic objectives 6 according to the draft Regulation.

34

Thematic objective: Promoting climate change adaptation, risk prevention and

management



funds:

1. Supporting dedicated investments for adaptation to climate change

Support the preparation and implementation of the national strategy for

adaptation to climate change and accompanying action plans

Support awareness-raising and capacity-building activities, emergency prevention

and preparedness measures to cope with potential climate disasters including

through the creation of early warning systems for floods etc.

2. Promoting investments to address specific risks

Improve drought and water management, for example via support for the

establishment of on-farm water storage zones and forest protection belts against

soil erosion.

The establishment, modernisation or extension of irrigation systems for

agriculture can be supported

Support fire prevention and restoration measures in forests

Support the conservation of genetic resources through preservation of local crop

varieties and livestock breeds in order to enhance the adaptive potential of the

agriculture and forestry and maintaining genetic diversity.




- develop a strategic framework to prioritise measures for the adaptation to climate

change and risk prevention and management

- develop and implement a national risk assessment plan, covering all natural and

man-made risks, followed up by an assessment of the capabilities of the country

to cope with the major risks that heave been identified and a prioritisation of

further investments.

- European support for irrigation purposes should be subject to strict EIA

(Environmental Impact Assessment) and be in full conformity with the Water

Framework Directive and taking into account the water stress in view of the

heavy intensification of the agricultural production


thematic objectives aimed at competitiveness of agriculture sector and protecting the

environment25

.

25

Thematic objectives 3 and 6 according to the draft Regulation.

35

FUNDING PRIORITY: Enhancing institutional capacity and an efficient public

administration

The objectives of the funding priority will be achieved primarily by thematic objective

Enhancing institutional capacity and an efficient public administration as well as

thematic objectives Enhancing access to, and use and quality of ICT.

Thematic objective: Enhancing institutional capacity and ensuring an efficient public

administration



funds:

1. Investment in institutional capacity and in the efficiency of public administrations

and public services with a view to reforms, better regulation and good governance

implement reforms to ensure better legislation, synergies between policies and

effective management of public policies, integrity and accountability in public

administration

enhance the capacity of the civil service for policy and service delivery, provide

training and ensure on-the-job training for staff;

implement reform measures in the career development system across the public

administration with a view to motivate staff and ensure stability;

enhance judicial capacity and improve the effectiveness and quality of the judicial

system.

2. Capacity-building for stakeholders delivering employment, education, health and

social policies, and sectorial and territorial pacts to mobilise for reform at national,

regional and local level

enhance the capacity of stakeholders, such as social partners and non-

governmental organisations, to help them deliver more effectively their

contribution in employment, education, health and social policies;

target investments in skills and capacity of staff in public services on all levels of

administration taking into account regional disparities and needs;

establish partnerships among different stakeholders and institutions for the

delivery of efficient public services.

Actions under this thematic objective may contribute, if relevant, to related

interventions identified under all thematic objectives.

36

C. ADMINISTRATIVE ARRANGEMENTS

General assessment of administrative capacities

The Croatian Government is currently undergoing preparations for the cohesion policy

2014-2020 with the Ministry of Regional Development and EU funds acting as the

coordinating authority. The former Central Office for Development Strategy and

Coordination of EU Funds became part of the Ministry of Regional Development and EU

funds.

In case of setting up one single Managing Authority, it is recommended that the

Managing Authority is fully empowered to ensure strong coordination of and guidance to

the Intermediate Bodies (IBs) to ensure concentration and synergies while improving co-

ordination and the strategic nature of the programmes and their effective implementation.

Ownership of policy sectors should be strongly embedded in the relevant line ministries,

in parallel with capacity building for policy design and delivery.

Particular attention should be paid to address any existing weaknesses in the Croatian

administration to ensure a proper level of implementation of the operational programmes

supported through ESI Funding. The risk of insufficient capacity will be higher under the

Structural Funds than in IPA, given the shortage and high turnover of staff, the need to

adapt to new management procedures under the shared management system, including

new procurement rules, a broader thematic scope of projects and expected heavier

workload linked to the increase of funds. An appropriate administrative capacity for an

efficient implementation of the programmes is to be ensured at regional and local level

next to the national level.

The IPA experience has demonstrated a number of weaknesses in the administrative and

technical capacities within the administration. The coordination between the institutions

and within bodies of the same operating structures is weak for some programmes. Further

efforts are necessary for an effective implementation of the plans to increase

administrative capacity for future cohesion policy implementation, for better strategic

approach in the development of projects and for a more mature project pipeline. Some

horizontal issues linked to EU acquis are not systematically anticipated at the project

design stage. Croatia should look at the examples of EU Member States and take note of

lessons learned in the administrative capacity domain.

The public procurement legislation in force since January 2012 provides for increased

transparency, including publication of information on the actual execution of contracts.

The effective implementation of this legislation is key, at national and especially at local

level. Risk of corruption, particularly at local level needs to be addressed. Furthermore,

improvements concerning the system of remedies are required26

.

In the field of transport policy further efforts are required, in particular to strengthen the

administrative capacity of the railway safety agency and to establish an independent joint

accident investigation body. Administrative capacity needs to be strengthened in the

fields of industrial pollution control and risk management, nature protection and

chemicals. The quality of environmental impact assessment for projects needs to be

significantly improved.

26

The Main Findings of the Comprehensive Monitoring Report on Croatia’s state of preparedness for EU

membership, 2012

37

Project delivery

To ensure smooth delivery of projects it is recommended to:

Expand the project pipeline initiatives providing tailored assistance for project

beneficiaries as regards the project preparation and management. Scope of services

offered should be broadened (trainings, counselling services, project development).

Develop the systems of support for project promoters in areas suffering from weak

beneficiaries' capacities (in all sectors). Improve coordination and planning of

investment in order to avoid redundancies and promote efficiency. Economic and

social rationale (use of cost-benefit analyses), cost-effectiveness (procurement, cost

estimation, variant analysis) and physical implementation of projects in general should

be improved.

To ensure that programmes support measures that are results oriented, with defined

target groups and proper management which requires administrative capacity.

Efficient coordination and communication in preparation of the programmes is

crucial among different institutions, in particular Managing Authority and

Intermediate Bodies.

long term planning of the appropriate project preparation phase of is a necessary

prerequisite for effective project delivery

Utilise cooperation framework for planning, exchange of good practice, and effective

delivery such as in the Danube and Adriatic/Ionian regions.

Administrative burden

Croatia should reduce the administrative burden for beneficiaries while ensuring an

efficient implementation of the regulation. Actions for the ESI Funds to that end should

include:

Streamlining of project selection procedures and enhancing transparency and

objectivity of the selection process and selection criteria, so that beneficiaries could

assess in advance whether their projects could succeed in the appraisal procedure.

Designing the reporting process so that it focuses on gathering the most relevant data

for monitoring (data from beneficiaries should be collected with frequency assuring

effective management of implementation);

Timely preparation and dissemination of implementation and procedural guidelines

before the start of the programmes;

Use of a system of simplified costs.

Partnership

Active participation of relevant partners at each stage of the programming cycle

improves the quality of implementation. To this end the following should be considered:

- The role of the civil society and social partners to act as a partner and to team up

with government should be strengthened in Croatia. It is of great importance that

all relevant stakeholders are actively involved in the preparation, implementation

and monitoring and evaluation of the projects on national and regional, local

level.

38

- Partnerships with bodies specialised in non-discrimination to be integrated in the

policy planning, including equality authorities and civil society.

- Further develop and make better use (including effective dissemination of

developed knowledge) of the existing networks mobilising citizens, business,

NGOs and other partners for initiatives essential for the smooth implementation

of operational programmes. The performance and needs of the networks should

be regularly assessed.

Monitoring and evaluation

The management and control systems for 2014-2020 should build on the positive

achievements in the 2007-2013 period. Croatia is encouraged to reflect on how sound

financial management could be enhanced by better coordination of funds and

programmes and by cutting administrative costs and burden for the beneficiaries - and -

for cohesion policy, by the use of e-Cohesion possibilities.

The key principle of sound financial management remains the basis for the development

of management and control systems in the next programming period.

Croatia should have an appropriate system to record and monitor state aid expenditure

and should ensure coordination by a body which is independent vis-à-vis granting

authorities, has appropriate dedicated resources (budget, qualified staff), is consulted on

the design of state aid measures and its opinions are taken into account

The physical implementation rate of IPA programmes to date is still limited due to

insufficient capacity in the design, appraisal and tendering of projects while the

monitoring information system has been partially set-up.

The evaluation culture should be strengthened in the future programming period.

Evaluations should be taken into consideration already when programming and designing

instruments. Evaluations should inform programming in a timely manner.

Adequate resources should be dedicated to developing good quality statistical indicators

essential for monitoring the implementation of public policies targets and Europe 2020

targets.

In the field of rural development, Croatia should ensure that the verifiability and

controllability of the measures proposed are confirmed in advance by the services

responsible for implementation and controls.

In the field of environment the access to information regarding the register and

management plans of protected areas shall be publicly available in order to avoid

watering down of the nature protection acquis. Likewise, actions to develop skills

regarding assessment of plans and programmes with regard to their impacts on

environment (e.g. transport plans, local land use plans etc.) and the integrated planning of

projects whereby the environmental aspects are taken into account already at initial

stages of the planning process and not at the end as a "damage control" tool, should also

be considered for support. Update of the register of agricultural land, grasslands and any

other parcel identification system is crucial to controllable public investments, since i.e.

Natura 2000 financing cannot be allocated without these tools.

fondos multilaterales en croacia 2013

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