Thank you, Prime Minister Plenković, Deputy Prime Minister Primorac and Minister Erlic for welcoming me in Zagreb and for co-hosting this important event.
It is a pleasure to join you for this significant annual event focused on Croatias Recovery and Resilience Plan.
Since taking office, this visit marks my first official trip to a Member State as Executive Vice-President for Cohesion and Reforms. My role highlights the importance of this policy area, as mandated by President von der Leyen, to lead reforms and investments that strengthen European growth and make our economies more sustainable and resilient.
Croatia, the EUs newest member since 2013, has shown remarkable progress despite recent global crises like the COVID-19 pandemic and the conflict in Ukraine.
Joining the Euro and Schengen areas in 2023 are significant milestones, with economic growth over 3% and unemployment at historic lows of around 5%. Inflation is projected to decrease to 3.5% this year and 2% by 2026.
The achievements reflect Croatias excellent work on many fronts, including the recovery and resilience plan addressing national challenges and delivering EU priorities like competitiveness and the green transition, which will be discussed in todays panels.
Croatia is among the frontrunners in implementing the recovery and resilience plan, with an overall value of EUR 10 billion, almost 13% of GDP. Croatia has already achieved 157 milestones and received EUR 4.5 billion, 44.7% of available funds.
While implementing EU policies involves funding, tangible results and benefits for citizens are crucial. Notable examples include renewable energy legislation reforms, a hydrogen strategy, health sector reforms, and investments in energy efficiency and clean water supply.
The mid-term evaluation of the RRF highlighted key lessons, emphasizing the need for flexible design and implementation to ensure ongoing value and effectiveness.
Future funding instruments will focus on optimizing EU funding and ensuring the best outcomes through synergies between different EU funding sources.
Croatias addition of REPowerEU to its plan, worth EUR 2.9 billion, focuses on promoting energy efficiency, renewable energy deployment, and independence from Russian fossil fuels.
The EU budget will remain under pressure, addressing challenges like the green and digital transition, Ukraine financing, and NextGenerationEU repayment. A new long-term budget will be proposed in 2025, focusing on aligning with priorities, simplifying procedures, and maximizing impact.
This will be an investment-focused Commission, unlocking financing for the green, digital, and social transition, supporting competitive industries, and encouraging research and innovation.
Efforts must continue to deliver the plan in full by 2026. Croatias example sets a standard for other Member States in accessing EU funds effectively, demonstrating that European solidarity works.
Thank you for your attention. I wish you a productive and enlightening event.