On 27 July 2026, the Council approved amendments to Croatia's recovery and resilience plan (RRP), following a reasoned request from Croatia on 9 July 2026 citing objective circumstances that made parts of the original plan unachievable. The amendments remove one measure, reduce three others, adjust 34 measures, add one new measure, and increase two, while the maximum financial contribution of €5.79 billion remains unchanged. Loan support is reduced by €79.3 million to €4.17 billion.
The amended plan reflects Croatia's need to adapt to changing economic conditions. One measure (C7.1 I2 – co-financing for alternative fuel vehicles and infrastructure) is removed entirely due to lack of demand. Three measures are partially reduced: C7.1 R1-I1 (hydrogen use) due to insufficient demand; C1.4 R3-I1 (port modernisation) due to high inflation and cost increases; and C3.1 R1-I4 (school construction) due to construction sector bottlenecks and worker shortages. Two measures adjust baselines to maintain original ambition: C2.5 R1 (justice system efficiency) and C4.3 R1 (social benefits transparency). A further 32 measures are amended to reduce administrative burden while keeping objectives intact, including measures on digitalisation, energy efficiency, and transport.
Freed-up resources from the reductions allow for one new measure (C2.3 R3-I18 – voluntary contributions to EuroHPC Joint Undertaking for an AI Gigafactory) and increased implementation of two existing measures: C4.1 R3-I1 (adult education vouchers) and C4.3 R3-I4 (elderly care centres). Additionally, 20 clerical errors are corrected across 15 milestones and targets, with no impact on implementation. The total estimated cost of the amended RRP is €9.96 billion, with the maximum financial contribution remaining at €5.79 billion. Green measures represent 37.00% of total allocation, while digital measures rise slightly from 21.07% to 21.84%. The Commission's positive assessment of the amended plan against all criteria of Article 19(3) of the Recovery and Resilience Facility Regulation remains unchanged.
The amendments impact several stakeholders. Croatian businesses in the alternative fuel and hydrogen sectors lose planned co-financing, potentially slowing the adoption of clean transport and industrial hydrogen. The construction sector, already facing bottlenecks and worker shortages, sees reduced school construction, easing pressure on labour demand. Croatian citizens benefit from increased adult education vouchers and elderly care centres, improving skills and social care. EU taxpayers see a slight reduction in loan exposure, with the overall financial contribution unchanged, ensuring fiscal discipline. The Council's decision now paves the way for the Commission to update the relevant legal acts and disburse funds accordingly.