This is a reform law under which the national system of direct payment of grants will be for the last time implemented in 2011, whereby the direct Subsidy Payments Schemes (or Single Farm Payment - SPS) model would be in force as of 2012.
According to the minister, the new legislation is one of measures from the government's Economic Recovery Programme, rendering the use of budget means for agriculture more transparent.
Cobankovic said that upon its entry into the EU, Croatia would have more funds disposable for agriculture than now. However, the agricultural sector must prepare itself timely and well for new policies, inculding a new detailed system for controlling the spending of grants.
The focus will be given to subsidies for rural development, which should rise twice their size in the next two years, Cobankovic said adding that currently grants for rural development now made up 20 percent of agricultural subventions.
According to the financial package prepared by the EU for Croatia in the event it joins the Union in 2012, Zagreb can count on EUR 483 million for rural development measures in 2012 and 2013, plus EUR 144 million for market measures and single payments in agriculture.