Brexit will have negative consequences for Croatian EU funding.
The European Committee of the Regions, a body that represents the regions and cities within the European Union, warned on Friday that due to Brexit there would be less money available for policies to reduce disparities between member states so they will have to be more efficient in withdrawing resources from European funds, reports Večernji List on July 9, 2016.
“There will be a lot of changes, but it is clear that there will be less money in the budget. The investments that will receive money will have to be better”, said Markku Markkula, president of the Committee of the Regions.
Eight months ago, the Cohesion and Competitiveness Programme was adopted, and Croatia has available 6.8 billion euros for projects that should reduce differences with more developed parts of the EU in the period from 2014 to 2020. But, after the citizens of the United Kingdom decided to leave the EU, London will soon begin negotiations on separation that could last two years.
“If these negotiations are completed before the end of the programme, so before 2020, it is likely that the British government will not want to pay the money for the whole agreed period, which would mean that Croatia would have less money available”, said a representative from the Committee of the Regions. “But, that will be part of the negotiations with London about leaving the EU and the other 27 countries will probably insist that the British pay it all”, said the source.
Last year, the United Kingdom paid in between 5 and 6 billion euros more than it withdrew from the EU funds budget. In the next seven-year period starting from 2021, the British will no longer participate in the programme, which will mean there will be less money for countries that joined the EU mainly to use the funds.
“In addition, due to the exit of the rich United Kingdom, the ranking of the regions throughout the EU will change and some will become relatively richer and probably be left without the money”, said a source from the Committee of the Regions.