EU Greenlights Croatia’s €896.9M NextGenEU Funding
The European Commission has recently approved Croatia’s request for €896.9 million as part of the Recovery and Resilience Facility, a key component of the NextGenerationEU initiative. This funding will support various reforms and investments aimed at enhancing public health access, sustainable finance, innovative mobility, water management, agriculture, and the fight against corruption.
Funding Approval and Milestone Achievements
According to the Commission, Croatia has successfully met six milestones and eleven targets as outlined in the Council Implementing Decision. These achievements are critical in moving forward with the requested payment.
Key Initiatives Supported by the Funding
- Healthcare Access: The funding will help establish six mobile caravan pharmacies and two boat pharmacies, improving healthcare in remote and island regions.
- Pension System Reform: Changes to the Compulsory Pension Funds Act will reduce administrative fees and enhance flexibility for fund members.
Next Steps in the Process
The Commission will forward its initial assessment of Croatia’s compliance with the established milestones to the Economic and Financial Committee (EFC). The EFC has four weeks to provide its opinion. Following this, the Commission will make a final payment decision.
Background of the Recovery and Resilience Plan
Croatia submitted this payment request on December 15, 2025. The country’s recovery plan encompasses a broad range of reforms and investments focused on climate change and digital transformation. Key objectives include:
- Green investments in businesses
- Electrification and digitalization of public transport
- Improved flood protection and access to drinking water
This extensive plan is financed by €10 billion, which includes €5.8 billion in grants and €4.2 billion in loans. With this latest payment request, the total funds received by Croatia under the Recovery and Resilience Facility will amount to €7.3 billion, equating to 73% of the allocated funds in its national plan. Currently, 62% of all milestones and targets outlined in the plan have been met.
Future Requirements
To complete the facility by the end of 2026, member states must fulfill any remaining milestones and targets by August 2026. Additionally, all final payment requests must be submitted by the end of September.
