Croatia's Successful Road to EU Accession
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[SUMMER 2013 ▶ NO 46] inforegioanorama ▶ The EU welcomes Croatia Its 28th Member State ▶ Cohesion policy helps weather the crisis ▶Ensuring EU Funds are properly spent ▶State aid and regional policy Regional and Urban Policy [SUMMER 2013 ▶ NO 46] ▶EDITORIAL ..................................................................3 Commissioner Johannes Hahn ▶FEATURE ................................................................. 4-9 ▶4 CROATIA’S SUCCESSFUL ROAD TO EU ACCESSION ▶WEATHERING THE CRISIS WITH COHESION POLICY SUPPORT .......................10-13 ▶AN INDEPENDENT VIEW ON COHESION POLICY PROGRESS, 2007-2011 ...........................................................14-16 ▶PROJECTS ..........................................................17-19 Examples of projects from Croatia, Finland and Slovenia ▶14 ▶17 ▶NEWS IN BRIEF ................................................20-21 ▶OPEN DAYS 2013 ............................................22-23 ▶ENSURING EU FUNDS ARE PROPERLY SPENT – A LOOK AT THE AUDIT PROCESS .................................24-29 ▶A BALANCING ACT – ▶22 STATE AID CONTROL AND REGIONAL POLICY ........................................... 30-31 ▶MAPS ....................................................................32-33 ‘NEET’ rate – population aged 15-24, 2012 Educational attainment – projected share of population aged 25-64 with a tertiary education, 2020 ▶IN YOUR OWN WORDS .................................. 34-39 National and regional perspectives on cohesion policy ▶AGENDA .................................................................... 40 ▶37 This magazine is printed in English, French and German on recycled paper. Photographs (pages): Cover: View of Zagreb © Shutterstock It is available online in 22 languages at Pages 3, 9, 21, 22, 23, 26: © European Commission http://ec.europa.eu/regional_policy/information/panorama/index_en.cfm Page 4: Split © Shutterstock Page 6: © Ministry of Regional Development and EU Funds, The content of this issue was finalised in June 2013. Republic of Croatia Page 8: Slavonski Brod © Marin Majstorović, BIOCentre LEGAL NOTICE © BICRO, Marasca © University of Zagreb Page 11: Hungrana © National Development Neither the European Commission nor any person acting on its behalf may be held responsible for the use to which information Agency, Hungary contained in this publication may be put, nor for any errors which may appear despite careful preparation and checking. Page 14: Superfast Cornwall © Cornwall Council This publication does not necessarily reflect the view or the position of the European Commission. Pages 17-19: Croatia © Shutterstock, Finland © Rokua Luxembourg: Publications Office of the European Union, 2013 Geopark, Slovenia © Brežice General Hospital Pages 24, 30: © Shutterstock ISSN 1608-389X Page 35: Moravia-Silesia © Jiří Zerzoň © European Union, 2013 Page 36: Flanders © Flemish Government Page 37: Saxony © LIFE, University of Leipzig Reproduction is authorised, provided the source is acknowledged. Page 39: Sweden © Tillväxtverket For use/reproduction of third-party copyright material specified as such permission must be obtained from the copyright holder(s). Printed in Belgium panorama [SUMMER 2013 ▶ NO 46] ▶eDitORIAL Johannes Hahn Member of the European Commission in charge of Regional Policy On 1 July 2013 we welcome the Republic of Croatia as The report provides an invaluable snapshot of policy delivery the 28th Member State of the European Union. For the past and shows we are providing support to new innovative busi- 12 years the country has undertaken a far-reaching pro- ness and creating good sustainable jobs for the future, giving gramme of reforms and adaptation of its legislation to the remote regions broadband, tackling the brain drain, and EU’s body of law – the so-called acquis communautaire. building vital transport links that contribute to regions’ com- petitiveness. It also helps identify those investment areas Upon accession, the EU Structural and Cohesion Funds avail- and programmes where action must be taken. able to Croatia will amount to EUR 450 million. This investment is expected to account for a large share of the country’s devel- Evidence that cohesion policy is capable of great flexibility opment budget in the years ahead, and presents an impor- and, in times of economic crisis, adapting to the changing tant opportunity to address Croatia’s needs. It can contribute needs of people and their communities is also presented in towards the development of a modern and competitive econ- the report. omy that will both benefit from and be an asset to the EU. In this issue of Panorama you can see some of the work Audit teams – the ‘unsung heroes’ already undertaken with EU support. Ensuring that the Funds of the EU budget are properly spent are the unsung heroes of the EU’s regional support process Strategic Report on the Implementation – the Commission’s auditing teams. Cohesion policy accounts of Cohesion Policy for some one-third of the EU budget, and the auditors have a vital role in overseeing complex and largely decentralised Croatia will join the other 27 Member States in reporting spending programmes. on evaluation as required in the new regulations. The Com- mission’s ‘Strategic Report’ on how EU Structural Funds have The EU auditors work very closely with national audit bodies been working in the EU 27 in 2007-2013 has recently been under a system of ‘shared management’. Through this pro- published. Based on reports submitted by the Member States cess, compliance has improved year on year. Learn more at the end of 2012, this is the first significant opportunity about their important work in the article on page 24. to report on outputs and results and the policies’ contribution to the EU’s economic recovery during a programme period. Collectively, they are the watchdog for the EU taxpayer and ensure the money is spent in line with the principles of legal- ity, regularity and sound financial management. 3 ▶FEATURE ▶ CROAtiA’s SUccESSFUL ROAD TO EU AccESSION On 1 July, the Republic of Croatia celebrated almost 20 years of economic and social progress since declar- ing independence by becoming the 28th Member State of the European Union. The negotiations launched in 2005 were officially concluded in June 2011, and were followed by the signing of the EU accession treaty in December 2011. The city of split on Croatia’s Adriatic coast. The EU accession process which has taken some 12 years A referendum in Croatia on 22 January 2012 showed that provided Croatia with the impetus to undertake far-reaching 66 % of voters were in favour of joining the EU. reforms and harmonise its legislation with the EU’s acquis communautaire. Throughout the interim period until the accession, Croatia had an active observer status in the European Institutions ‘Croatia is now a different country than it was at the start of to allow its officials to become familiar with the working the accession process,’ commented Štefan Füle, European methods of the EU institutions and to be involved in the Commissioner for Enlargement and European Neighbourhood decision-making process. Policy. ‘It also joins the European Union better prepared than some other acceding countries. This is the result of a long and thorough process and the country should be congratulated. EU membership offers substantial opportunities and these HUNGARY SLOVENIA opportunities now need to be used so that Croatia’s partici- ZAGREB pation in the EU will be a success and a benefit to Croatia, its SERbia OSIJEK people, but also to the benefit of the Western Balkans and RIJEKA SISAK of the EU as a whole.’ VUKOVAR A long and successful road PULA BOSNIA AND The process of integrating Croatia into the European Union HERZEGOVINA started with the EU’s Stabilisation and Association Process ZADAR for the Western Balkans launched in 2001, after which it ŠIBENIK SPLIT applied for EU membership in 2003. The accession talks DUGI RAT were formally opened in spring 2005. Adriatic Sea PLOČE Though negotiations were held up by a set of issues, the proc- MONTENEGRO ess was completed in 2011. The Treaty between Croatia and DUBROVNIK the 27 EU Member States was signed on 9 December 2011. 4 panorama [SUMMER 2013 ▶ NO 46] Being competitive CROATIA: KEY FACTS Before the global financial crisis of 2008-2009, the Croatian economy was growing at a rate of 4-5 % annually during ▶ Total surface area: 87 661 km2 which incomes doubled and economic and social opportuni- ▶ Population: 4 290 000 ▶ Capital: Zagreb ties dramatically improved. The prolonged crisis has how- ▶ Political system: Parliamentary democracy ever put this progress and Croatia’s aspirations to the test ▶ Territorial organisation: 20 counties and with unemployment rising to over 14 % at the end of 2012. the City of Zagreb Youth unemployment in the country remains high. ▶ Urban centres: the population is concentrated in urban centres and 49 % of all citizens live in EU accession offers a major opportunity to strengthen the the 5 largest counties – City of Zagreb and County of Zagreb, Split-Dalmatia, Osijek-Baranja and competitiveness of the country through reinforcing the com- Primorje-Gorski Kotar petitive advantage of the country and its regions and take ▶ Official language: Croatian full benefit from the expanded market. ▶ Currency: Kuna (HRK) – 1 EUR = 7.58 HRK ▶ Key trade partners: Italy, Austria, Germany, Slovenia, Serbia Industry and trade patterns ▶ Major export commodities: transport equipment, machinery, textiles, chemicals, foodstuffs and fuels ▶ Main