On Friday, at its 63rd session, the Government of the Republic of Croatia adopted a conclusion accepting the proposal for a regional aid map for the period from 2022 to 2027, dividing Croatia into four NUTS 2 regions, and sent it to the European Commission for approval.
On 19 April 2021, new Guidelines for Regional State Aid were published, and as a result, a Proposal for a Regional Aid Map for the period 2022-2027 was prepared. which is sent for approval to the European Commission.
This map identifies areas where state aid can be granted that encourages the economic development of areas with low living standards or high unemployment and their maximum intensity.
The previous division of the Republic of Croatia into two NUTS regions proved to be inadequate and unfair for the implementation of regional policy, given that the aid intensity was 25% regardless of the investment region. For example, the Continental Croatia region consisted of 14 counties that are very different from each other, especially in terms of their socio-economic opportunities and future development, and these counties achieved a lower rate of regional aid compared to actual GDP per capita.
This new map corrects this because we will have more balanced regions in terms of population, economic indicators and other socio-economic trends.
Compared to the previous division, this Map, divided into four NUTS 2 regions, brings a significant increase in co-financing rates for all regions, including the most developed region, the City of Zagreb.
Accordingly, the maximum intensities for large enterprises that can be awarded are as follows:
In Pannonian Croatia 50% because it reaches 41.58% of the average GDP per capita in the EU-27. (which is + 25% more than now);
In Northern Croatia 50% because it reaches 48.43% of the average GDP per capita in the EU-27. (which + 25% than now);
In Adriatic Croatia 40% because it reaches 60.33% of the average GDP per capita in the EU-27. (which is + 15% than now);
In the City of Zagreb, 35% because it reaches 109.24% of the average GDP per capita in the EU-27 (which is + 10% than now).
The maximum regional aid intensity is increased by 10% for medium-sized enterprises and 20% for small enterprises.