EU and Croatia economic and energy support programs

The European Union and Croatia have introduced several financial initiatives aimed at regional development and industrial stability.

In North Macedonia, the EU launched a funding initiative via the IPA III program to support civil society organizations in the Koçani region. The grants, ranging from 10,000 to 15,000 euros, target projects involving youth economic empowerment, digital skills, artificial intelligence, and social entrepreneurship.

In Croatia, initiatives focus on environmental and industrial transitions. The European Commission approved a €60 million program to compensate energy-intensive industries, such as steel and chemical manufacturers, for high electricity costs linked to carbon pricing under the EU Emissions Trading System. This aid is intended to prevent industrial relocation and mitigate the impact of volatile energy prices. The program aims to mitigate the risk of carbon leakage by covering up to 80 percent of indirect emission costs incurred between 2025 and 2030, with annual disbursements of €10 million.

Further domestic economic support includes a 20 million euro subsidy program for electric vehicle adoption. Additionally, the Croatian Bank for Reconstruction and Development (HBOR) is launching a €18.6 million credit program for the agricultural processing sector. Available from October 28, these loans, ranging from €200,000 to €3 million, target micro, small, and medium enterprises investing in meat, grain, fruit, and vegetable processing, with some loans potentially including a principal write-off of up to 40 percent.

Expanding these financial efforts, HBOR and the European Investment Bank (EIB) have signed a €300 million agreement to finance investments for Croatian SMEs, with at least 30 percent of the funds earmarked for green projects. Additionally, the City of Varaždin has secured a €25 million loan from the EIB to fund urban infrastructure, including schools, sports complexes, and fire stations.