Montenegro and Croatia face economic challenges regarding disaster relief and EU fund usage

In Montenegro, the government is facing challenges in compensating citizens for damages caused by wildfires. While total estimated damages from fires and other natural disasters in 2025 reached approximately 3.5 million euros, only 68,807 euros have been paid out from an approved 200,000 euro budget. Out of 825 decisions made by the Commission for Damage Assessment, only 90 have been realized due to a lack of state funds. The Ministry of Internal Affairs reported 3,136 fire interventions throughout the year, with 870 occurring during the summer season.

In Croatia, the government reported that 7.3 billion euros of the 10 billion euros available from the National Recovery and Resilience Plan (NPOO) have been disbursed through August. These funds have supported infrastructure, education, healthcare, and energy projects. However, economists have criticized the allocation, noting that the heavy focus on public infrastructure provides only a one-time boost to GDP. Analysts suggest that the lack of investment in private industry and long-term growth sectors may lead to a slowdown in economic growth once the funding cycle concludes.