Keynote Speech Highlights Croatia’s RRF Success In his first official trip as Executive Vice-President for Cohesion and Reforms, Raffaele Fitto commended Croatia's impressive progress under its Recovery and Resilience Plan (RRP). Since joining the EU in 2013, Croatia’s milestones include accession to the Euro and Schengen areas in 2023 and steady economic growth exceeding 3%. Fitto highlighted Croatia’s achievement in fulfilling 157 targets and securing 44.7% (EUR 4.5 billion) of the EUR 10 billion plan, equating to nearly 13% of its GDP. He cited reforms advancing renewable energy uptake, health sector resilience, scientific research excellence, and energy efficiency investments largely benefiting Croatian industries and consumers.
Policy Focus on Flexible and Simplified EU Funding Fitto emphasized that EU policies' success depends not only on funding but on tangible outcomes and administrative efficiency. Stressing flexibility and administrative capacity, he pointed out the importance of simplifying procedures to reduce burdens, thereby facilitating swift fund access and execution. Future EU budget plans aim for greater policy focus, simplicity, and impact through new tools like a European Competitiveness Fund, leveraging public and private financing to support green, digital, and social transitions.
Balancing EU Cohesion and National Implementation Fitto's speech underscores a nuanced stance on EU governance: maintaining strong EU-level funding and coherence while calling for flexible, tailored national implementation, evident in Croatia’s integration of the REPowerEU instrument mid-implementation to advance energy independence and green reforms. The proposal signals increased EU investment focus and coherence but retains significant national discretion in execution.
Impact on Stakeholders -Croatian Government and Authorities: Positive impact from substantial EU funding and technical support enhances national resilience and economic growth but requires sustained administrative capacity and political commitment. -Croatian Business Sector: Gains from investments improving energy efficiency and competitiveness but faces adjustments to meet reform requirements. -EU Regulatory Bodies: Tasked with assessing payment requests and ensuring performance-based milestones, leveraging increased monitoring and evaluation responsibilities. -EU Taxpayers and the Broader EU Economy: Potentially positive long-term returns from efficient use of funds for cohesion and competitiveness, balanced against the need for fiscal prudence in expanding budgetary commitments.
In summary, Fitto advocates continuation and refinement of the RRF and Cohesion instruments to foster EU-wide cohesion, green and digital transitions, and economic competitiveness, highlighting Croatia as a model of implementation while advocating for a smarter, more flexible EU budget framework starting 2025.
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