On 27 July 2026, the Council adopted an implementing decision amending its 28 July 2021 approval of Croatia's recovery and resilience plan, adding new reforms and investments under Component 1.1 (Resilient, Green and Digital Economy) and Component 1.1.2 (Boosting Innovation and Digitising the Economy). The revision targets improving the business environment, liberalising regulated professions, boosting private investment, supporting green and digital transitions, and strengthening cultural and creative sectors.
The decision updates the original plan approved in July 2021, which allocated €6.3 billion in grants under the Recovery and Resilience Facility. The new measures include a €277.4 million equity injection into the Croatian Bank for Reconstruction and Development (HBOR) for strategic digital and green investments, with strict exclusions for fossil fuels, high-emission activities, waste landfills, incinerators, polluting vehicles, and nuclear energy. An additional €26.5 million is earmarked for public sector entities, and €29.9 million for equity and quasi-equity instruments via HBOR and the European Investment Fund.
A key reform requires Croatia to simplify or abolish at least 50 regulatory requirements for professional services by 31 December 2024. Other deadlines include the completion of business environment reforms by 31 December 2024 and the equity injection into HBOR by 31 August 2026. Implementation is assigned to Croatian authorities including the Ministry of Economy and Sustainable Development (MINGOR), HBOR, HAMAG BICRO, and the Electronic Media Agency, with the Commission assessing compliance.
The revision balances deregulation and investment support with environmental safeguards, impacting businesses through reduced administrative burdens and access to capital, while excluding high-emission sectors. The Croatian government gains flexibility to redirect funds toward digital and green priorities, but faces tight deadlines and strict exclusion criteria. The European Commission will monitor milestones and targets, with any non-compliance potentially affecting disbursements.