The European parliament has earmarked one million euros for this project, called "Heritage as a means of development. Reconstruction of architectural heritage in Vukovar town centre - sustainable revival and development of a war-torn community".
The remaining 340,000 euros will be provided by the Croatian government and the Vukovar Reconstruction and Development Fund.
The United Nations Development Programme (UNDP) will implement the project over the next two years.
Thanking the EU for the donation for the reconstruction of the Workers' Hall, Minister Pankretic said that to date the Croatian government had invested more than EUR 5.2 billion for the returnees and for the reconstruction of war-damaged housing and infrastructure.
The purpose of the project is to restore the facade of the Hall, the most representative architectural monument in the Vukovar town centre, and to conduct broad consultations on the future use of its interior.
"The aim is both to help restore the town's cultural heritage, thereby increasing Vukovar’s attractiveness as a tourist destination, and to promote a renewed sense of community by promoting inter-cultural and inter-ethnic dialogue," the EU Delegation said on its web site.
Vukovar Mayor Zeljko Sabo said that the reconstruction of the entire building would cost 40 million kuna (approximately EUR 5.5 million).
The Workers' Hall, built in the late 19th century, is listed as architectural monument of A category. It was badly damaged in the 1991-1995 war.