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None of Croatia's 3 statistical regions will remain without EU funds, say negotiators

ZAGREB, April 11 (Hina) - Level of development will cost none of Croatia's three statistical regions money from European Union funds over the EU's next two long term budgetary periods, namely by 2020, but they could lose them if they fail to prepare projects on time and adequately, a delegation of Croatia's EU entry negotiating team told the press on Wednesday.
ZAGREB, April 11 (Hina) - Level of development will cost none of Croatia's three statistical regions money from European Union funds over the EU's next two long term budgetary periods, namely by 2020, but they could lose them if they fail to prepare projects on time and adequately, a delegation of Croatia's EU entry negotiating team told the press on Wednesday.

Croatia had to establish three statistical regions -- Adriatic, Pannonian and Northwestern Croatia -- in order to qualify for money from EU structural funds upon joining the Union.

The media have speculated that the most developed of the three regions -- Northwestern Croatia -- which includes Zagreb, might lose money from EU funds because it will soon reach 75% of the EU's average GDP.

Everyone will have the possibility to use the money over the next two financial perspectives so one should focus on project preparation, the delegation said.

The current financial perspective refers to the 2007-13 period and the next one to the 2014-20 period.

Croatia will not lose the money upon reaching 75% of the EU's average GDP, but will gradually pass from Objective 1, which is the most important given that it carries 75% of funds from three existing Objectives, to Objective 2, which carries about 20% of the funds, the delegation said.

Throughout those two time periods, Croatia will have at its disposal funds from Objective 3, which is intended for territorial cooperation, and from the Cohesion Fund, intended for transeuropean infrastructure and investment in the environment.

Currently 84 European regions have Objective 1 status and the money they receive is EUR165 per capita annually.

Twelve regions are gradually passing onto Objective 2 where the funds amount to 82 euros per capita.

Croatia receives 30 euros per capita annually, which is the approximate amount it will receive if Northwestern Croatia reaches the 2020 ceiling and enters Objective 2.

It is estimated that Adriatic Croatia has 50% of the EU's average GDP, Pannonian (Central and East) Croatia has 36% and Northwestern Croatia 66% of the EU's average GDP.

Croatia is likely to have EUR600-900 million annually from structural funds upon joining the EU, provided that it prepares projects eligible for the money, the delegation said, underlining that the preparation of the projects must begin now so that money could be drawn upon accession.

Asked by the press if before the division into three statistical regions Croatia had tried to suggest other division models, the delegation said two proposals had been made. One was for a division into five regions, but Eurostat rejected it because the regions did not meet the criterion that each region must have a minimum 800,000 inhabitants. The second proposal was that Zagreb be proclaimed a separate region, but this was rejected for the same reason.

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