New EU Reconstruction Fund Could Benefit Croatia Amid Coronavirus Crisis

Lauren Simmonds



The coronavirus crisis has seen an array of consequences be played out with the European economy and the individual economies within it. With some countries, particularly those who rely more heavily on tourism, struggling to see the light at the end of the tunnel and biting their nails. The EU Reconstruction Fund could see the bloc step into a new era.

As Poslovni Dnevnik writes on the 28th of May, 2020, the new EU Reconstruction Fund is a big step forward for the whole of the EU because for the first time, mass borrowing has been proposed at the level of all of the Union’s member states.

Following the coronavirus crisis, the Republic of Croatia should be one of the biggest ”winners” of the new EU Reconstruction Fund, which is worth as much as 750 billion euros, and which was officially presented by the European Commission (EC) in Brussels yesterday.

As Vecernji list has unofficially learned, 10 billion euros could allegedly be allocated to Croatia from the EU Reconstruction Fund, which represents a huge step forward in the development of the entire European Union, and according to a table from extensive European Commission documents, Croatia’s allocation would be the largest when compared to total GDP per country to which the money goes.

The EU Reconstruction Fund marks a new ero of sorts for the whole of the EU because for the first time in its history, mass borrowing has been readily proposed at the level of all of the Union’s member states, contrary to the current practice of borrowing exclusively at national levels, and as such, the European Commission would distribute the money in the form of grants provided to those who have been most affected by the crisis caused by the global coronavirus pandemic.

More precisely, the European Commission’s proposal is to distribute a massive 500 billion euros in the form of non-refundable money, and 250 billion euros in the form of loans, which will be the most favourable possible loans on the market for countries like Croatia because the EU enjoys a top credit rating of AAA, which is something that Croatia can unfortunately otherwise only dream of.

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