JULY 25 2012 19:11h
Croatia is satisfied with the revised 2014-2020 multiannual financial framework (MFF) proposal and funds earmarked for Croatia represent a great opportunity for its development, Croatian Foreign and European Affairs Minister Vesna Pusic said in Brussels on Tuesday after a meeting of EU foreign minister, which she attended as an observer.
The General Affairs Council convened in Brussels today to discussed the revised 2014-2020 MFF proposal. The European Commission revised its MFF proposal from June 2011, taking into account the latest data available and including the cost of Croatia’s accession.
The biggest share of the amount allocated for Croatia, as well as for other EU members, comes from two budgetary items - cohesion and agriculture. Under the European Commission's proposal, as part of the cohesion policy, Croatia could withdraw EIR8.7 billion in the seven-year period. As part of the budgetary chapter about the agriculture, rural development and environment a total of EUR3.5 billion has been envisages for Croatia. The overall effect of Croatia's EU entry on the seven-year MFF amounts to EUR13.741 billion in commitments and EUR9,956 billion in real payments.
"We are satisfied with the European commissions MFF proposal," Pusic said.
The ministers participating in today's session welcomed Croatia's EU entry and its inclusion in the MFF, however EU member states are still having heated discussions about the seven-year budgets. The member states are divided into two groups - those receiving more than paying into the budget and those paying more than receiving from the budget. The first group, which now Croatia is part of, is informally called "Friends of Cohesion". This groups is comprised of new member states and some old EU members such as Italy and Spain. They are harshly against the reduction of cohesion funds. The other group, called "Friends of Better Spending", believes that at the time of crisis and budgetary cuts, cohesion policy must not be an exception.
The revised 2014-2020 MFF proposal amounts to EUR1,033 billion in assumed obligations which is 1.08 percent of the EU's GDP and EUR988 billion in real payments which is 1.03 percent of GDP (Hina)