EFSI - English Version (Coauthorship)

April / 2018.
special edition
EUROPEAN
FUND FOR
Informative Magazine of Office of Member of the European Parliament Ivana Maletić
STRATEGIC
INVESTMENTS
– Status of implementation,
challenges and opportunities
in the EU with a special
review of Croatia and
neighbouring
non-member
countries
1
Impressum
April / 2018. special edition
EUROPEAN Publisher
FUND Office of Member of the European Parliament
Informative Magazine of Office of Member of the European Parliament Ivana Maletić
FOR STRATEGIC Ivana Maletić

INVESTMENTS
– Status of implementation,
challenges and opportunities Editor-in-Chief
in the EU with a special
review of Croatia and Ivana Maletić, MA (Econ)
neighbouring
non-member
countries Authors
Ivana Maletić
Ivana Petričko
Tea Japunčić
Alen Halilović
Domagoj Badžim
Benjamin Kardum
Ema Brnardić
Kristina Kosor
Maja Butorac
Graphic design
Blanka Poljak Franjković
Content
4
Introduction: Investment Plan for Europe – encouragement
for the creation of workplaces and faster growth and
development Write to us
6
ZAGREB
Trg žrtava fašizma 4
10 000 Zagreb
European Fund for Strategic Investments – institutional
framework and project examples STRASBOURG
Parlement européen
19
Bât. Louise Weiss
T09033
1, avenue du Président Robert Schuman
State of play with regard to use of EU funds in CS 91024
the Republic of Croatia F-67070 Strasbourg Cedex
+33(0)3 88 1 75734
24
+33(0)3 88 1 79734
BRUXELLES
State of play with regard to use of EFSI funds in six Parlement européen
candidate and potential candidate countries for EU Bât. Altiero Spinelli
membership 14E165
60, rue Wiertz / Wiertzstraat 60
27
B-1047 Bruxelles/Brussel
+32(0)2 28 45734
+32(0)2 28 49734
Technical assistance for preparation and increasing the
visibility of projects www.ivana-maletic.com
ivana.maletic@europarl.europa.eu
31
facebook.com/ivana.maletic.cro
www.twitter.com/maleticivana
www.youtube.com/user/MEPOfficeMaletic
Activities of the Office
to actively promote those projects and invite investors.
Financing sources are available, the funds exist, and it is
important to connect them with projects.
The European Investment Bank, in addition to managing

EFSI and providing guarantees and loans, also organizes
technical assistance for the preparation of projects and a
portal for publication and promotion of projects with the
aim of attracting private investors who will be more ready
to take risks and initiate new businesses with the support
of funds – EFSI guarantees and favourable loans.
In addition to establishing EFSI, the European Commission

presented new guidelines on the application of existing
rules of the Stability and Growth Pact in order to strengthen
the link between structural reforms, investments and
fiscal responsibility in encouraging economic growth and
creation of new workplaces. The guidelines applied by the
Introductory word Commission have three main objectives: to strengthen

successful implementation of structural reforms, promote
projects, especially in the context of EFSI, and pay more
attention to the economic cycle in Member States. Based
Since the beginning of the 2008-2013 economic crisis, the on a clear and quality structural reform plan, Member
level of investment in the EU dropped by more than 18 States undergoing an Excessive Deficit Procedure can gain
% due to decreased availablity of financing sources. As an extenuation of the deadline for making corrections, that
the answer to that problem, the European Commission is, the possibility of slower fiscal consolidation because it
decided to change the former direction of policies from is important to leave enough room for new investments
stability and savings to investment, growth and creation and expenses for implementing reforms.
of workplaces. The Investment Plan for Europe was
designed, for the realization of which the European Fund There are many opportunities for financing; thereby
for Strategic Investments was established, which issues Croatia, in addition to 10,7 billion euros from ESI funds,
guarantees for the financing of high risk profile projects can also use numerous other financing sources such as
which could not obtain funds without them and would Union programmes (Erasmus+, Horizon 2020, COSME,
never be realized. CEF, Wifi4EU etc.), favourable EIB and EBRD loans and
the latest instrument – EFSI. The successfulness of using
The objective is to mobilize as many private sources as all these sources and inverting economic trends depends
possible for financing high risk profile investments and solely on ourselves, that is, our good organization, timely
investments into SMEs. Sound and successful businesses and quality preparation of projects, favourable conditions
with potential for growth and development do not need for doing business and a fast and efficient administration.
subsidies but capital and favourable loans, and that is The objective of this special issue is to draw closer the
precisely what EFSI is intended to provide. opportunities of financing projects in the Republic of
Croatia through the use of EFSI guarantees and thereby
The objective of the Investment Plan for Europe is achieving increase the level of use of that source. The European
economic growth and development of the European Commission is continually pointing out that EFSI cannot
Union, which does not require only available financing implement itself; that is the task of Member States.
sources but also well prepared projects, a set of measures Intermediaries for SMEs, that is, for active financial
regarding structural reforms and creation of favourable institutions, and establishment of national and regional
conditions for doing business and strengthening the investment platforms are required. Companies can
Single Market. Without an adequate number of projects contact EIB directly with regard to the opportunities for
ready for implementation and a safe and stable market in financing or preparation of their projects. Only in this way
which investors have confidence, it is impossible to raise EFSI will encourage growth and development, as well as
the level of investment and successfully use any financing allow for the creation of new workplaces.
source, from ESI funds to EFSI guarantees. Due to a lack
of quality projects and their promotion, private investors
are bypassing Europe although it is favourable for
investments. That is an important message to all Member
States, including Croatia; we cannot wait for investors to
come on their own and inquire about the possibilities for Member of the European Parliament
investment, it is important to prepare and publish a list of Ivana Maletić
projects for which we are inviting investors to Croatia and
Introduction: Investment Plan for
Europe – encouragement for the creation
of workplaces and faster growth and
development
The Investment Plan for Europe is not a single stimulating environment, simplification of legislation and creation of
measure or fund, it is a process and a complete programme a more quality Single Market with emphasis on the capital
which needs to be implemented as a whole in order to market. These are European structural reforms which the
encourage growth and development of the European European Commission has been placing at the forefront
economy. It consists of three basic pillars: 1. Mobilization and wanting to implement as of 2014, and without which
of funds for investments, 2. Project identification and there can be no growth, development and investment.
preparation, 3. Simplification of the legislative framework
and strengthening of the Single Market. The very creation of the list of projects and their
implementation is a kind of reform, because Member States
With the aim of mobilizing funds, the European Fund are requested to change their attitudes and become more
for Strategic Investments (EFSI) was established in active in communication with private investors. Some are
cooperation with the European Investment Bank (EIB). In far ahead than others with regard to that, however, Europe
the first phase, EIB allocated five billion euros to the Fund, should change in that direction as a whole. Member States
and another 2,5 billion euros in the second phase, after must have development strategies and projects in order to
bringing the decision on the extenuation of EFSI, the so- realize the set growth and development objectives. Those
called EFSI 2.0. In addition, 16 billion euros of investment who have that use EFSI guarantees, but also all other
potential is based on guarantees from the European project funding instruments, to a greater extent and faster.
budget, from which eight billion euros were allocated, The success and result of the Investment Plan for Europe
specifically from Horizon 2020 programme, Connecting depends on everyone, but it is a fact that by launching
Europe Facility (CEF) and budgetary reserves, and after this Plan Europe has turned another page: from stability
the decision on extenuation of EFSI was brought, the and savings to investments, growth and creation of
allocation was increased from 16 to 26 billion euros. workplaces.
The purpose of EFSI is investment into high risk profile As the main part of the Investment Plan for Europe,
projects in the areas of research, innovation, energy, EFSI is directed at financing projects with higher risk
transport and social infrastructure, education and science, levels than projects eligible for financing in common
and with extenuation of EFSI these areas were extended to business transactions. Projects valued at over 50 million
include agriculture, fisheries, forestry, as well as climate- euros are eligible for direct EIB financing with EFSI
related measures. gurantees, whereas SME and MidCap projects valued
at up to 50 million euros are financed through financial
In order to be able to invest funds, well prepared, structured intermediaries operating in the Member State concerned
projects are required. Private investors are bypassing under EIB’s Infrastructure and Innovation Window (IIW)
Europe precisely because of the lack of presentation and and Window for Small and Medium Enterprises (SMEW).
structuring of quality projects, although it is a favourable
place for investment. In cooperation with Member States, The instruments EFSI offers to potential investors include
EIB prepares projects for attracting private investors who loans, equity type products, guarantees and products for
will, supported by EFSI funds, that is, guarantees, be more increasing lending and stimulating the capital market.
ready to take risks and start new businesses. Micro, small and medium-sized enterprises, public
companies and institutions, national investment banks
The third part of the programme for investments, growth and contractual investment platforms can apply for EFSI
and new workplaces is reduction of the administrative financing.
burden, creation of a favourable and encouraging business
4
With the aim of increasing the visibility of projects and Following that, in the third part an overview of the
faster attracting of investors, the European Commission system for using EFSI funds in the Republic of Croatia
established the European Investment Project Portal (EIPP). with examples of projects being implemented there and
instructions for entrepreneurs and public enterprises
At a plenary discussion on EFSI 2.0 held at the European on where to apply to and how to obtain EFSI guarantees
Parliament in December 2017, Vice President Jyrki are provided. Entrepreneurs, but also public institutions
Katainen pointed out that EFSI managed to initiate in candidate countries and potential candidate countries
additional investments in the amount of 250 billion euros. for EU membership can also use EFSI guarantees, so in
According to EIB data, EFSI’s investments will increase the fourth part an overview of the prescribed framework
the European GDP by 0,67 % by the end of 2017, and the for using EFSI funds by those institutions is provided.
number of workplaces by 690.000 by 2020. Unfortunately, there are no project examples as yet,
although from the analysis of usage of other EU financing
An important message to entrepreneurs relating to the sources it may be concluded that there is more than
realization of EFSI guarantees is that they do not need enough need and potential for using EFSI funds.
the approval of or support from the government and local
units, but can contact EIB directly, whose experts will Promotional and educational activities for encouraging
help them, evaluate projects and direct them at available the use of EFSI funds in non-member countries are
sources of financing. lacking. In the final, fifth part, the mode of functioning
of the European Investment Advisory Hub, which is the
Another important message is that implementation also single contact point for investors and project holders,
requires local intermediaries for financing SMEs, through as well as the easiest way for realization of technical
which loans, but also other financial instruments, will be assistance for the preparation and/or implementation of
realized. This is an opportunity for the Republic of Croatia projects, but also for obtaining advice on the eligibility of
to enhance the financing of SMEs. a particular project for obtaining an EFSI guarantee are
provided. Furthermore, the European Investment Project
Furthermore, private equity funds can also apply for Portal, where projects seeking investors are presented
EFSI financing in order to finance their beneficiaries. In and promoted and which does not relate exclusively to
cooperation with EIB, the European Commission strongly financing from EFSI, but, of course, wherein the part
supports Member States and regions in establishing lacking for the realization of investments intended to be
national and regional, and even cross-border investment attracted can be covered by an EFSI guarantee, that is, an
platforms which will serve as a kind of fund into which EIB loan is also described.
public funds, funds from promotional banks, pension
funds and insurance companies could be invested. An
investment platform will be able to receive EFSI’s support
and thereby invest into high risk profile projects or public-
private partnerships with a guarantee.
Lack of awareness represents the greatest challenge

in the implementation of EFSI, because 85-90 % of
potential investors still do not know enough about the
opportunities offered by EFSI. That is precisely why it is
important to prepare materials and organize events in
Member States in cooperation with European Commission
and EIB representatives. It is necessary to ensure direct
contact with entrepreneurs, regional and local authorities,
and financial intermediaries with regard to spreading
information on EFSI and presenting good practice
examples.
Based on this recommendation the material facing you

has been prepared, where, in the second part, the manner
in which EFSI is organized and the way of using it are
explained, project examples per particular financed areas
set out, and an overview of the level of usage of EFSI
guarantees per Member States put forward.
5
European Fund for Strategic Investments
– institutional framework and project
examples
For the purpose of recovery of the European Union from infrastructure, research and innovation, energy efficiency
the consequences of the 2007 economic crisis, in 2014 the and renewable energy sources, digital technologies,
European Commission launched an initiative under the environmental protection etc. In addition, the purpose
title of Investment Plan for Europe, the so-called Juncker of EFSI is also to support access to financing for subjects
Plan. It is an initiative for increasing investments across with up to 3000 employees, with special emphasis on
the EU and encouraging long-term economic growth, MidCaps, as stated in Article 3, paragraph 2 of Regulation
thereby supporting the existing efforts of Member 2015/1017.
States undertaken in that direction. The Investment Plan
for Europe is not a single stimulating measure, but a Table 1: Categorization of MidCaps according
complete programme consisting of three main elements to Commission Reccomendation 2003/361/EC3
(pillars): 1) European Fund for Strategic Investments
(EFSI) – mobilization of funds for investments, 2)
European Investment Advisory Hub (EIAH) and European
Company Number of Total
Investment Project Portal (EIPP) – identification and Turnover
category employees balance
preparation of projects and 3) improvement of the
investment environment by removing regulatory
≤ € 50 ≤ € 43
obstacles on the national and EU level – simplification of Medium < 250
milion milion
the legislative framework and strengthening of the Single
Market. ≤ € 10
Small < 50 ≤ € 10 milion
milion
EFSI is the backbone of the so-called Juncker Plan. It was ≤€2
Micro < 10 ≤ € 2 milion
established in 2015 for the following three-year period milion
together with bodies from the second pillar by Regulation
(EU) 2015/1017 of the European Parliament and of the An EFSI guarantee is a European Union budgetary
Council on the European Fund for Strategic Investments, guarantee ensuring protection of the EIB Group from
the European Investment Advisory Hub and the European initial losses, that is, insuring high risk profile projects
Investment Project Portal and amending Regulations (EU) which could not obtain a loan from EIB according to the
No 129/20131 and (EU) No 1316/20132 (hereinafter: usual benchmarks.
Regulation 2015/1017). Funds from EFSI are intended
for encouraging and supporting strategic investments Established by a joint initiative of the European
with higher risk profiles than projects supported by Commission and the EIB Group, EFSI has a separate
the common operations of the European Investment management structure.4 An independent Investment
Bank (EIB), which are directed at key areas such as Committee consisting of eight experts and a Managing
__________________________________________
1 Commission Implementing Regulation (EU) No 129/2013 of 14 February 2013 amending Regulation (EC) No 1121/2009 as regards the transitional
national aid to be granted to the farmers in 2013 and Regulation (EC) No 1122/2009 as regards the reduction related to the voluntary adjustment of
direct payments in 2013. This regulation is no longer in force.
2 Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility,
amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010. This regulation is still in force.
3 The Small Business Development Promotion Act was drawn up in accordance with Commission Recommendation 2003/361/EC of 6 May 2003.
Taking that into account, the definitions of subjects within the framework of small economy were taken over from the mentioned recommendation.
4 Grupu EIB-a čine EIB i Europski investicijski fond (EIF), čiji je EIB najveći dioničar. U sklopu Junckerova plana, Grupa EIB-a dio je šire strategije za
smanjenje rizika koji snose ulagači, a koji su povezani s projektima.
5 EFSU djeluje u okviru EIB-a, čije je odobrenje potrebno za svaki projekt koji se iz Fonda podupire.
6 Procjene projekata koje provede osoblje EIB-a ne obvezuju Odbor za ulaganje na odobravanje jamstva EU-a.
6
Scheme 1: Project cycle
Investment
Project Project EIB Director The loan has been
Committee
identification evaluation approval approved
approval
Negotiations
Financial
Payment Drawing of funds Contract signing on contractual
monitoring
documentation
Source: drawn up by the author based on „Implementation of the Investment Plan for Europe in the Republic of Croatia“ by
the Croatian Bank for Reconstruction and Development, available at: https://www.hbor.hr/wp-content/uploads/2016/11/
Provedba-Plana-ulaganja-za-Europu-u-RH__Prezentacija2.pdf, viewed on 8 April 2018.
Director is in charge of consideration of projects which direct financial contributions with the aim of financing a
will potentially be financed from EFSI. series of investment projects. Such platforms allow for
pooling funds from different sources, and smaller or local
With the exception of a requirement from Article investments can be rendered more attractive for new
9 of Regulation 2015/1017 relating to the general groups of investors (for example, institutional investors
objectives which projects should promote, in Article or pension funds). As stated in Point 21 of the preamble of
6 several eligibility criteria which a project must Regulation 2015/1017, many SMEs and Mid-Caps require
fulfil in order to obtain an EU guarantee are listed: assistance in order to attract market financing, especially
1) economic sustainability, 2) conformity with EU with regard to high risk profile investments. EFSI should
policies (including the Europa 2020 strategy), 3) help those subjects solve the problems of lack of capital,
provision of additionality5, 4) mobilization of private market shortcomings and financial fragmentation, which
sector capital to the largest possible extent and 5) are causing unequal conditions on the market across the
technical sustainability. There are no limitations with Union, by enabling EIB, EIF and national development banks
regard to the size of an eligible project. Upon receiving or institutions, investment platforms or investment funds to
project documentation, the Investment Committee provide direct and indirect recapitalisation and guarantees
transparently and independently brings a decision for high-quality securitisation of loans and other products
on allocation of EFSI funds. It is important to note approved for the purpose of realization of EFSI objectives.
that there are no thematic or geographical quotas
for allocation of those funds. EFSI financing is based Investment platforms are flexible, and can be established
exclusively on demand6. by public and private actors. Thereby, where appropriate,
co-investors, public bodies, experts, educational and
In addition to the Investment Committee and the Managing research institutions, institutions dealing with training,
Director, the EFSI management structure also includes relevant social partners and representatives of the civil
a Steering Committee, which is in charge of monitoring society, as well as all other relevant subjects on EU level
the realization of its objectives. For financing smaller and the national and regional level can join together.
projects under EFSI, so-called investment platforms According to the manner of project grouping, platforms
were established. According to Article 2, paragraph 4 of can be: national or subnational (several investment
Regulation 2015/1107, an „investment platform“ means projects on the territory of a single Member State),
a special purpose vehicle, managed account, contractual cross-border, multinational, regional or macro-regional
co-financing, risk-sharing arrangement or an arrangement (grouping partners from several Member States or third
established in any other way through which subjects countries) and thematic (projects in a particular sector).
__________________________________________
4 EFSI operates within the framework of EIB, whose approval is required for each project supported from the Fund.
5 According to Article 1, Paragraph 3 of Regulation 2017/2396, „additionality” means EFSI support for operations resolving market shortcomings
or unoptimal investment situations, which could not be carried out in the period in which an EU guarantee can be used, or at least not to the same
extent, through EIB, EIF or existing Union financial instruments without EFSI support.
6 During the presentation of the Investment Plan for Europe, European Commission President Juncker and Vice President Katainen often pointed out
that the problem in the EU was not inadequate sources of financing, but the lack of well-structured projects ready for financing. The new investment
plan is intended precisely to encourage all Member States to open up to business and investments and to define what kinds of investments and in
which areas they will promote.
7
The legal form and structure of financing an investment Amendment to Regulation (EU) 2015/1017
platform depends on project requirements and the main – EFSI 2.0
interests of investors. Through investment platforms,
third parties can also participate in financing projects in Considering the success EFSI achieved in the first year
cooperation with EFSI, of which more will be said later. of its operation, in his 2016 State of the Union Address,
European Commission President Jean-Claude Juncker
According to the Draft report on the implementation announced a proposal for its extenuation and modification.
of EFSI drawn up by the Committee on Budgets and Following that, at the end of 2016 the Council agreed on
Committee on Economic and Monetary Affairs of the its negotiating position on the new regulation proposal
European Parliament from January 2017, a serious planning for extenuation of EFSI by 31 December 2020,
problem with regard to establishing investment platforms but also on a series of technical improvements of both
was perceived (one year after Regulation 2015/1017 had EFSI and EIAH. Regulation (EU) 2017/2396 of the
entered into force no such platforms were established7). European Parliament and of the Council of 13 December
2017 amending Regulations (EU) No 1316/2013 and (EU)
Furthermore, the role of EIB in those platforms is not 2015/1017 as regards the extenuation of the duration of
clear to all stakeholders. Interviewed subjects also stated the European Fund for Strategic Investments as well as
that there is a great demand for innovative projects which the introduction of technical improvements in that Fund
are below the EFSI project threshold under the part for and the European Investment Advisory Hub (hereinafter:
innovation and infrastructure. At the moment it seems that Regulation (EU) 2017/2396) was brought in December
the need for financing smaller projects is not fulfilled to an 2017 and entered into force on 1 January 2018.
adequate extent by establishing platforms or allocation of
resources through financial intermediaries. The novelties introduced by Regulation (EU) 2017/2396,
in addition to extenuation of EFSI, include: 1) increase of
In order to make better use of the opportunities provided the investment target from initial 315 to 500 billion euros,
by EFSI, potential beneficiaries have tools comprising the 2) increase of guarantees from the EU budget from 16
second pillar of the Investment Plan for Europe initiative to 26 billion euros (of which 16 billion are available for
at their disposal. EIAH is the European point of access activating guarantees by mid 2018) and 3) increase of EIB
to investment support (where, inter alia, specialized contribution from initial 5 billion to 7,5 billion euros.
counseling regarding the structure of investment
platforms is provided), and EIPP is an internet market Furthermore, Regulation (EU) 2017/2396 is intended
and a meeting place for investors and promoters of EU to ensure that EFSI support covers as many EU Member
projects. Both tools serve to provide greater visibility of States as possible, especially those in less developed
investment projects and enhance the flow of investment transitional regions8, and that at the same time the range
funds to the real economy. of activities covered by that support be extended. Thereby,
for example, the „new“ EFSI also covers the sectors
As regards the investment environment, the third of agriculture, fisheries, forestry, as well as climate-
pillar of the so-called Juncker Plan, according to Point related measures9. In addition, the objective of the new
12 of the preamble to Regulation 2015/1017 the Regulation is also improvement of transparency with
investment environment in the EU should be improved regard to investment decisions and management actions.
by eliminating obstacles to investment and by ensuring The Investment Committee now must substantiate its
non-discrimination with regard to whether projects are decisions on allocation of funds and issue a table of
managed privately or publicly. Furthermore, the internal indicators10 for each operation.
market should be strengthened and regulatory visibility
increased, which implies implementation of structural
reforms.
__________________________________________
7 The first investment platform was established as late as in the third trimester of 2016. It was the Equity platform, launched by EIF and the Euro-
pean Commission, which was intended to facilitate cooperation between EIF and national development institutions (NDIs) or banks across EU
Member States. The Equity EIF-NDI platform will help EIF and NDIs to mutually promote each other and exhange knowledge and best practices.
On 29 September 2016 CBRD joined that platform, whose objective is actually linking national, EU and private financing sources and development
of new standardized equity products in cooperation with EIF. The platform is intended to facilitate access to funds for SMEs (up to 250 employees)
and MidCaps (250-3000 employees) operating on EU territory through the development of new opportunities and equity model investments into
innovative projects, in their early phase as well as in their growth phase. Almost 30 NDIs from 18 EU Member States are included in the EIF-NDI
platform (list available at http://www.eif.org/what_we_do/equity/NPI/members-list.pdf), including institutions active on the national as well as on
the regional level).
8 In that sense the European Commission will attempt to facilitate the combination of EFSI funds with other financing sources on EU level. In addition,
EIAH will focus its actions and funds on projects contributing to sectoral and geographical diversification of EFSI.
9 Until then EFSI funds were used for financing projects from the sectors of transport, energy and broadband infrastructure, education, healthcare,
research and risk financing for SMEs.
10 http://eur-lex.europa.eu/legal-content/HR/TXT/PDF/?uri=CELEX:32015R1558&from=HR, viewed on 7 April 2018.
8
Scheme 2: EFSI 2.0
EU budget EIB
16 + 10 = 26 billion euros 5 + 2,5 = 7,5 billion euros
EFSI
21 + 12,5 = 33,5 billion euros
Infrastructure and innovation projects SMEs
Source: drawn up by the author
All signed projects which will last after 2020 will continue Window for Small and Medium Enterprises (SMEW). IIW
to be financed from EFSI until their completion. For the and SMEW are two specific frameworks within EFSI – the
period after 2020 the Commission intends to present first one is managed by EIB and is intended for projects
proposals intended to ensure the continuation of strategic valued at over 50 million euros and whose holders report
investments on a sustainable level, which should ensure directly to EIB, while the second one is managed by EIF
stability and security for project investors and promoters. through financial intermediaries (intermediary banks
which concluded a contract with EIB on allocation of funds
Overview of past use of EFSI funds per sectors to interested applicants) and is intended for financing SME
and MidCap projects valued at less than 50 million euros.
By March 2018, as the financial component of the Juncker Those projects are financed through EIF. It is expected
Plan, EFSI mobilized 274 billion euros in investments, that these two frameworks will encourage investments in
which constitutes 87% of the set investment target the amount of 264,3 billion euros. Transactions approved
amounting to 315 billion euros. Most of the funds were so far cover all EU Member States.
invested into strategic infrastructure (including, for
example, digital, transport and energy sectors), with over „EFSI is a great example of what EU’s bank is able to do
274 approved infrastructure and innovation projects. in order to help achieve more with deficient public funds“,
pointed out EIB’s President Werner Hoyer. „It shows
Market absorption was especially fast with regard to that transition from grants and subsidies to loans and
SMEs, where EFSI performed above expectations – a guarantees can be a powerful tool of public policy. We
total of 389 financing contracts were approved, which welcome the extenuation of the Juncker Plan which was
will bring benefit to cca. 600.000 SMEs. In July 2016, in approved earlier this year. On the basis of lessons learned
accordance with the existing framework of Regulation during this period and our favourable past achievements,
(EU) 2015/1017, the EFSI Steering Committee increased we offered to undertake even greater responsibility under
the amount of funds for SMEs and MidCaps in all Member the Multiannual Financial Framework for the period after
States by 500 million euros. That amount was transferred 2020.”14
to the part for SMEs from the part for infrastructure
and innovation, and will be used for InnovFin11 and
COSME12 loan guarantee instruments, EU Programme for
Employment and Social Innovation13, and for development
of new products. According to data from 26 May 2017, 224
transactions were also approved under the Infrastructure
and Innovation Window (IIW), as well as 275 under the
__________________________________________
11 InnovFin is a guarantee instrument financially backed by the European Commission within the framework of the Horizon 2020 financial instrument
and EFSI. It is intended for SMEs focused on research, development and innovation, or having innovation potential.
12 COSME 2014 – 2020 is a programme for increasing competitiveness of companies and SMEs, established with the aim of promoting competi-
tiveness. In addition to SMEs, the target groups of the programme are current and potential enterprises and business organizations supporting
enterprises. COSME ensures better access to financing, provides services of support to doing business and promotes entrepreneurship in general.
13 Employment and Social Innovation Programme (EaSI) is a financial instrument for promoting a high level of quality and sustainable employment
on EU level, and guaranteeing appropriate and decent social protection, fight against social exclusion and poverty, as well as improvement of working
conditions.
14 http://www.eib.org/infocentre/press/releases/all/2018/2018-006-eu-bank-tackles-investment-gaps-in-innovation-and-development.
htm?lang=-hr, viewed on 7 April 2018.
9
Chart 1: EFSI investments per sectors, according to the last results, on 15 March 2018.
35%
29%
30%
25% 23%
21%
20%
15%
11%
10% 8%
4% 4%
5%
0%
SMEs R&D Energy Digital Transport Social Environment
infrastructure infrastructure and resource
efficiency
Source: EFSI investments per sectors, European Commission, 2018. Available at: http://www.eib.org/efsi/efsi_dashboard_
en.jpg, viewed on 10 April 2018.
From Finland to Greece, from Ireland to Croatia, from high very important for solving the problem of unemployment.
quality industrial projects to rehabilitation of the agro- Hereafter follow examples of implemented projects for
food industry carried out by SMEs and MidCaps, from each of the sectors presented earlier:
wind power plants to introduction of new healthcare
technologies, EFSI brings concrete benefit to innovative
projects contributing to growth on the local level and
opening of new workplaces. In that sense EFSI is also
• SMEs:
Member State Spain

Project title INCARLOPSA AGRO FOOD INVESTMENTS
Project holder INDUSTRIAS CARNICAS LORIENTE PIQUERAS SA
Total expenses 97 million euros
Financing EFSI guarantee for an EIB loan in the amount of 35 million euros
This project will alllow for expansion, upgrading and modernization of existing plants
Description and facilities of the Industrias Cárnicas Loriente Piqueras (INCARLOPSA) company in the
regions of Tarancón and Corral de Almaguer.
Introducing the best available processing and automatization technology, which will
allow for significant improvements regarding energy and water consumption, as well
as an increase of production capacity and efficiency. By introducing new technologies
INCARLOPSA will be able to optimize its energy efficiency and improve employees’
Objective
working conditions through improved automatization of production processes. The
new investment will improve the level of safety control and visibility of all products. The
project will allow for the creation of 1000 workplaces through expansion of production
capacities in the mentioned regions.
10
Member State Germany
Project title VIKING HEAT ENGINES
Project holder VIKING HEAT ENGINES GERMANY GMBH
This project was designed in order to commence production of innovative equipment for
using energy from a low-temperature (waste) heat source and converting it into electrical
Description
energy suitable for re-use. VHE develops and commercializes technologies enabling
industry to convert waste heat into useful electrical energy.
The project is intended to allow the VHE company to implement planned activities,
increase investments and reduce expenses for increasing production processes, as well
as to further develop technologies allowing for conversion of waste heat into useful
electrical energy in the period 2017-2019. The project will contribute to reduction of
Objective
CO2 emissions. Small innovative companies such as VHE are the basis for future growth
and creation of workplaces in Europe. Viking Heat Engines is a perfect example of a
project which is smart, sustainable and cost-effective – instead of wasting energy, waste
is converted into energy and CO2 emissions are reduced.
Member State Poland

Project title NEW FURNITURE PRODUCTION PLANT (SITS)
Project holder SITS SP ZOO
The project will contribute to capital investments for the construction of a new production
facility for producing upholstered furniture, procuring, setting up and raising the quality
of corresponding equipment for the production of furniture, as well as construction
of a new, fully equipped storage space in the period 2017-2019. It is expected that in
Description time the investment will create up to 500 new workplaces. The new production facility
will be located on a 13-hectare parcel and will be developed using the most innovative
technologies available in the furniture production industry. These investments are part
of plans designed for achieving growth of the SITS company, which exports 95% of its
products.
The SITS company intends to realize planned growth through increasing production and
Objective
storage capacities, because existing capacities and available space do not allow for that.
• R&D
Member State Portugal

Project title PARENTERAL SOLUTIONS INDUSTRIAL PROJECT PORTUGAL
Project holder Laboratórios Basi – Indústria Farmacêutica, S.A
Investments related to medical technology for Basi pharmaceutical company in the
Description municipality of Mortágua, district of Viseu. Basi is a company for development and
production of medical and other products for human use.
Establishment of a new unit within Basi pharmaceutical company which will increase
its production capability and lead to the creation of 109 new workplaces. At the moment
when the new unit becomes operational, it will be able to produce up to 110 million doses
Objective
of parenteral medical drugs for curing digestive system diseases. This modernization will
increase the company’s growth, as well as encourage its internationalization by increasing
its export capacity.
11
Member State Bulgaria
Project title BIOVET PESHTERA
Project holder HUVEPHARMA INTERNATIONAL BV
The project consists of construction of new production facilities, as well as financing
research, development and innovation activities of the Bulgarian agro-pharmaceutical
company Huvepharma in the area of animal health. The project covers construction of
Description
two new facilities: a new fermentation facility for the production of active substances,
nutritional supplements, enzymes, probiotics and finished medical preparations for
animal health, as well as a new factory for the production of animal vaccines.
Strengthening innovation in the European pharmaceutical sector through the creation of
Objective 210 new workplaces in rural areas of Bulgaria, as well as strengthening the competitiveness
of the leading company in the Bulgarian veterinary sector.
Member State Latvia

Project title UNIVERSITY OF LATVIA RESEARCH AND STUDY CENTRE
Project holder LATVIJAS UNIVERSITATE
The project finances construction and equipment of two university buildings in the new
Description
Tornakalns campus, located immediately near the historical centre of the town of Riga.
Supporting modernization of university infrastructure through construction of a new
research, technological and study centre. Directing research activities towards one place
at Tornakalns campus instead of using existing isolated buildings surrounding the town
Objective
of Riga will contribute to the overall quality of academic life. This modern campus will
help Latvia provide more research and development activities and produce a qualified
cadre.
• Energetics
Member State Belgium

Project title NORTHER OFFSHORE WIND
Project holder ENECO HOLDING NV, NETHYS SA
Total expenses 1.1 billion euros
Construction and management of a wind power plant 22 km off the Belgian coast with a
Description
projected capacity of up to 370 MW.
Production of renewable energy sources and contributing to the safety of energy supply
and environmental protection objectives. Upon completion, 44 wind turbines will supply
Objective 324.000 Belgian families with renewable electrical energy. The wind power plant is
estimated to reduce greenhouse gas CO2 emissions by cca. 593.000 tons annually. The
project is directed at ensuring a safe, accessible and ecologically acceptable energy source.
12
Member State Finland
Project title SATO ENERGY EFFICIENT BUILDINGS
Project holder SATO OYJ
The project ensures funds for financing construction of new and improving energy
Description
efficiency of existing buildings in the Helsinki town area to the SATO company.
The main objective intended to be achieved with the project is construction of new energy
efficient buildings and adaptation of existing ones in order to reduce energy consumption
and CO2 emissions, contributing to the safety of supply and EU objectives with regard to
mitigation of the consequences of climate change. Due to interventions regarding energy
Objective efficiency in new and existing buildings, it is expected that the project will generate primary
energy savings of up to 2.461 MWh annually, which is equal to about 460,5 tons of annual
CO2 emission savings. Reconstruction of buildings is one of the key sectors of the scenario
for reducing CO2 emissions from the EU Agenda 2030, considering that buildings account
for 40% of energy consumption in the EU.
Member State Italy

Project title TOSCANA ENERGIA GAS NETWORK & METERING
Project holder TOSCANA ENERGIA SPA
Toscana Energia SPA represents a consortium in charge of management and distribution
of gas and production of electrical energy from renewable energy sources. The project
Description includes replacement, upgrading and expansion of the gas distribution network, in addition
to setting up smart measurement systems across the entire network, which is mostly
located in the Tuscany region.
The project should increase the safety of the network, improve its reliability and reduce
gas drain, that is, gas leaking. Setting up smart measurement systems will allow for easier
Objective
access to data on consumption in real time, which will potentially allow for increasing the
efficiency of network management.
• Digital infrastructure
Member State France

Project title TELCO
Project holder Telco OI
TELCO is a telecommunication services provider seated in France. The project includes
upgrading and expansion of mobile networks (3G and 4G) in the French overseas
departments of La Réunion and Mayotte. The project includes reconstruction of existing
Description
locations, setting up modern access nodes, including basic network elements and upgrading
of the transmission network in order for it to be able to cope with the expected high
increase in mobile data transfer.
The objective of the investment is to increase the availability (coverage) and quality of fast
mobile broadband services based on 3G / Universal Mobile Telecommunications System
(UMTS) and 4G / Long-term Evolution (LTE) technologies in the departments of La Réunion
and Mayotte, as well as mobile broadband services in rural and distant areas of the country.
Objective
The project is intended to allow for achieving 95% coverage of the population with the 4G
network within 5 years from launching the service. The project supports the initiative of
Europa 2020 strategy for the Digital Agenda for Europe and its specific objectives in order
to allow for fast (over 30 Mbps) use of broadband services to all citizens by 2020.
13
Member States Sweden and the Netherlands
Project title LTE VOLTE – HIGH SPEED MOBILE INTERNET ROLLOUT
Project holder TELE2 AB
Financing EFSI gurantee for an EIB loan in the amount of 125 million euros
The project relates to investment into expanding and increasing the capacity of 4G mobile
networks in Sweden and the Netherlands. In Sweden the plan is to expand geographical
Description coverage by 2019, which would lead to complete 4G network coverage in Sweden. In the
Netherlands the objective is to increase 4G network coverage in open spaces by the end of
2018 and 4G network coverage in households in densely populated areas.
The project will result in increased quality and coverage of mobile networks, allowing
for provision of advanced broadband mobile services in rural and distant areas.
Telecommunications have a direct and indirect impact on increasing growth and allowing
Objective
for high-quality employment based on innovation. In line with this, it is expected that the
project will have a positive impact on the overall achievement of sustainable growth and
employment in the Netherlands and Sweden.
• Transport
Member State Slovenia

Project title DARS – FREE FLOW TOLLING SYSTEM
Project holder DARS – DRUZBA ZA AVTOCESTE V REPUBLIKI SLOVENIJI DD
The project includes setting up and putting into operation an electronic toll collection
system (ETCS) for vehicles weighing over 3,5 tons, which will replace the existing toll
Description
collection infrastructure. The project also includes dismantling and restructuring the
existing physical toll collection stations.
Upgrading and replacement of the existing toll collection system for heavy vehicles along
a 610 km network of roads and highways in Slovenia, which is currently based on toll
Objective
collection at stations. This will lead to reduction of waiting time on highways, as well as to
reduction of fuel consumption, gas emissions and noise.
Member State Italy

Project title FNM NEW REGIONAL ROLLING STOCK
Project holder FNM SPA
Procurement of ten new trains for provision of regional services in Lombardy (Italy) and
Description
cross-border regional services between Lombardy and Ticino (Switzerland).
The project is intended to contribute to increasing the quality of rail passenger services
in Lombardy and the cross-border service between Lombardy and Ticino. It is expected
that new trains will allow for more efficient work, reduce energy consumption and
increase the level of comfort for passengers. Indirectly, through improvement of services,
Objective
reconstruction of railway vehicles will help railways become competitive to other means
of transport, especially private vehicles. Transition of passenger flows from other forms
of transport to railways may result in reduction of use of personal vehicles, increased
safety and environmental protection.
14
Member State France
Project title ROLAND GARROS AIRPORT – REUNION
Project holder AEROPORT DE LA REUNION ROLAND GARROS
This projects is part of a plan for development of Roland Gaross Airport for the period
2011 – 2022. Two main investment schemes of this project, relating to expansion and
reconfiguration of the passenger terminal and construction of safety areas on the runway
Description cover a part of the plan for Réunion Island Roland Garros Airport development 2011–
2022, with the common objective of reduction of current transport congestion and
harmonization of transport growth with improvement of environmental and safety
conditions.
Expansion and reconfiguration of the existing passenger terminal, construction of four
Objective new safety areas on the runway. Investment into the construction of the new terminal will
increase the airport’s capacity to cca. 3,5 million passengers annually.
• Social infrastructure
Member State Great Britain

Project title MIDLAND METROPOLITAN HOSPITAL PPP
Project holder SANDWELL AND WEST BIRMINGHAM HOSPITALS NHS TRUST
The project includes construction of a new hospital in Birmingham in the Middland region,
Description replacing two existing obsolete buildings, and is part of a comprehensive integrated
healthcare plan for elderly population.
The new hospital, covering 80.000 m2, will allow for integration of hospital services,
support the development of improved primary healthcare services and palliative care,
and replace the existing inappropriate hospital institutions.
Member State Ireland

Project title PRIMARY CARE CENTRES PPP
Project holder NATIONAL DEVELOPMENT FINANCE AGENCY (NDFA)
The holder of this project, which is implemented as a public-private partnership, is the
Description National Development Finance Agency as the financial advisor of public bodies on all
public investment projects with capital value of over 20 million euros.
The project is intended to achieve better access to primary healthcare protection in
Ireland. It is expected that through construction of new primary healthcare protection
centres new services, which are currently unavailable on the territory of Ireland, will
Objective
be introduced, and the quality of services provision and ability of introduction of new
models of healthcare services provision increased, which will lead to an increase in the
efficiency of provision of healthcare services, as well as cost reduction.
15
• Environment and resource efficiency
Member State Germany

Project title HKM STEEL MANUFACTURING MODERNISATION
Project holder Huettenwerke Krupp Mannesmann GmbH
Huettenwerke Krupp Mannesmann is a private company dealing with production of
steel. The project will finance a new hot furnace which will be set up on the existing high-
Description quality steel installation, which will contribute to improvement and modernization of
production technology, and thereby to strengthening competitiveness in relation to other
steel producers.
Increasing energy efficiency and reduction of CO2 emissions, as well as more efficient
Objective
production of steel with less resources than required in current steel production.
Member State Romania

Project title ROMANIA RECYCLING AND CIRCULAR ECONOMY PROJECT
Project holder GREENFIBER INTERNATIONAL SA
Financing EFSI guarantee for an EIB loan in the amount of 7,5 million euros
The project includes investment into increasing the storage capacity for material suitable
for recycling of the private company Greenfiber, the leading recycling company in
Description Romania and one of the largest recycling companies in Europe. Affairs of the mentioned
company include collection of recycling materials, production of polyester fibres from
PET packagings and recycling electrical and electronic equipment
The project is intended to create 280 new workplaces, as well as increase the capacities
for collected and processable recycling waste by more than 50.000 tons annually. The
Objective
project will contribute to Romania’s transition to a circular economy and to fulfiling
national recycling objectives.
16
Overview of past use of EFSI funds per In the following table approved amounts in the areas of
Member States infrastructure and innovation projects, financing of SMEs,
overall EFSI investments per Member States and the share
In this part an overview of use of available EFSI funds of EFSI funding in the overall GDPs of Member States are
per Member States, as well as of expected added set out.
value of invested funds is provided, and good practice
examples regarding the use of EFSI funds are presented.
Table 2: EFSI funding per Member States (in billion euros)
Expected
Total
Infrastructure added
Expected Total EFSI expected EFSI share
and Financing value
Member State added investment EFSI (6) in GDP
innovation of SMEs from
value (2+4) added (%)
projects financing
value
of SMEs
1. 2. 3. 4. 5. 6. 7. 8.
Greece 1,900 5,800 0,350 2,800 2,200 8,600 19,16
Estonia 0,043 0,111 0,069 0,691 0,112 0,803 13,07
Portugal 1,100 3,100 1,000 3,000 2,100 6,100 12,47
Malta 0,005 0,017 0,006 0,017 0,011 0,034 12,17
Spain 4,900 24,000 0,889 9,200 5,800 33,000 10,86
Bulgaria 0,281 0,652 0,075 0,944 0,356 1,600 10,69
Finland 1,400 5,500 0,035 0,369 1,400 5,500 9,37
Italy 4,800 15,000 2,300 24,000 7,100 39,000 8,67
Latvia 0,164 0,370 0,019 0,245 0,182 0,615 8,54
Lithuania 0,265 0,596 0,029 0,294 0,294 0,890 8,12
Poland 2,700 8,500 0,156 1,400 2,900 9,900 7,44
France 7,200 30,800 2,000 10,600 9,200 41,400 6,99
Croatia 0,120 0,494 0,099 0,342 0,219 0,836 6,94
Slovenia 0,051 0,102 0,015 0,635 0,066 0,738 6,55
Sweden 0,308 1,000 2,000 7,000 2,300 8,000 6,41
Slovakia 0,450 1,000 0,037 0,267 0,487 1,300 5,87
Ireland 0,785 2,900 0,249 1,300 1,034 4,300 5,36
Czech Republic 0,099 0,312 0,470 2,400 0,569 2,800 5,19
Belgium 1,000 4,700 0,250 1,400 1,200 6,000 5,16
Netherlands 2,100 7,600 0,138 0,654 2,200 8,200 4,29
Hungary 0,101 1,300 - - 0,101 1,300 3,81
United Kingdom 2,100 14,800 0,602 4,100 2,700 19,000 3,24
Austria 0,863 2,400 0,109 0,452 0,972 2,800 2,9
Germany 4,600 17,000 0,633 5,000 5,200 22,000 2,65
Denmark 0,327 0,900 0,205 0,720 0,531 1,600 2,17
Romania 0,274 0,705 0,083 0,471 0,357 1,200 2,15
Luxembourg 0,014 0,053 0,063 0,196 0,077 0,249 1,67
Cyprus 0,035 0,053 0,010 0,028 0,045 0,081 1,65
Source: drawn up by the author based on „Investment Plan results“, European Commission, 2018. Available at: https://
ec.europa.eu/commission/priorities/jobs-growth-and-investment/investment-plan-europe-juncker-plan/investment-
plan-results_hr , viewed on 5 April 2018.
17
In the area of infrastructure and innovation projects France Table 3: Overview of EFSI share in GDPs of Member States
is the Member State with the largest amount of approved from the fifth wave of enlargement, in percentage
funds, 7,2 billion euros, whereas Hungary is the country
with the smallest amount of approved funds, 101 million
euros. With regard to funding SMEs, Italy is the Member
State which has realized the largest amount of financing, No. EFSI share in
Member State
2,3 billion euros, whereas on the other side is Hungary, GDP (%)
where no financing has been recorded in the area of SMEs.
The Member State with the largest total amount of EFSI
financing is France with 41,4 billion euros, whereas Malta 1. Estonia 13,07
is the country with the smallest total financing amount, 11 2. Malta 12,17
million euros. 3. Bulgaria 10,69
The share of EFSI funds in GDP is largest in Greece, 19,16 4. Latvia 8,54
%. The share of EFSI funds in the GDP of Greece is 6,09 5. Lithuania 8,12
percentage points larger than its share in the GDP of
6. Poland 7,44
Estonia (the second country according to the share of
EFSI funds in GDP), and 6,69 percentage points compared 7. Croatia 6,94
to Portugal (the third Member State according to the 8. Slovenia 6,55
share of EFSI funds in GDP). Cyprus is the country with
the smallest share of EFSI funds in GDP, as little as 1,65%, 9. Slovakia 5,87
which is 17,51 percentage points less compared to Greece. 10. Czech Republic 5,19
11. Hungary 3,81
Total financing within the framework of EFSI in Croatia
amounts to 219 million euros, and 836 millions of 12. Romania 2,15
additional financing is foreseen. In the area of infrastructure 13. Cyprus 1,65
and innovation projects, five projects amounting to 120
million euros have been approved, financed by EIB with Source: drawn up and calculated by the author based on
support from EFSI. It is considered that allocation of those „EU-wide results as of March 2018“, European Commission,
120 million euros will lead to an increase in additional 2018. Available at: https://ec.europa.eu/commission/
investments by 494 million euros. In the area of financing priorities/jobs-growth-and-investment/investment-plan-
SMEs, seven agreements with intermediary banks have europe-juncker-plan/investment-plan-results_hr, viewed on
been approved, financed by EIF with EFSI support in the 9 April 2018.
total amount of 99 million euros.
Estonia has the largest share of EFSI funds in GDP, 13,07
It is predicted that additional investments in the amount %, whereas on the other side Cyprus has the smallest
of cca. 342 million euros will be generated by about 914 share, 1,65 %. According to the table, Croatia is ranked
SMEs. The share of EFSI funds in Croatia’s GDP amounts to seventh according to the share of EFSI funds in GDP,
6,94 %. Hereafter follows a table showing the percentage 6,94 %. It is a rather good position considering that the
of the share of EFSI funds in GDPs of Member States from available envelope from ESI funds is considerable.
the fifth wave of enlargement.
Of the total amount of EFSI funds amounting to 49,579

billion euros, 88,50 %, that is, 43,880 billion euros, were
used by senior and most developed Member States,
whereas 13 newer Member States used 11,50 %, that is,
5,699 billion euros. This shows that technical assistance
and promotional activities need to be intensified in order
to significantly increase the level of use of EFSI guarantees
in EU13 countries, that is, in less developed Member
States.
18
State of play with regard to use of
EU funds in the Republic of Croatia
With membership in the EU Croatia gained a framework for • Participation in implementation of the Investment
economic development through European policies which Plan for Europe through cooperation on the level of
are applied to all Member States. Those policies bring with investment platforms and individual projects, as well
them significant financing sources from EU funds, which as making direct contact with members of the EIB
is especially significant in the context of the six-year long Group;
economic crisis in which more than 12 % of Croatian GDP • Functioning as the national access point for possible
was lost. Within the framework of the Investment Plan project holders;
for Europe, 12 projects in the total amount of 219 million • Creation of new financial products in accordance with
euros have been approved to the Republic of Croatia so requirements of the Croatian economy;
far, which should generate a total of 836 million euros in • Identification of economically and technically
investments. Of the total number of approved projects, sustainable projects in key sectors, especially in
five are EIB’s, relating to SMEs, tourism, energetics and innovative, ecologically aware and social areas which
research and development, whereas seven are EIF’s, also will be proposed for financing within the framework
relating to SMEs and research and development. More will of EFSI;
be said on this subject later. • Attracting private subjects for investment in
combination with public resources;
Institutional implementation of EFSI in • Participation in financing infrastructure projects and
the Republic of Croatia SME projects through different programmes aimed at
promoting economic growth;
Affairs related to cooperation with EIB and EIF for the • Establishment of the Croatian Investment Project
purpose of implementation of the Investment Plan for Portal2 (CIPP), covering current and future investment
Europe in the Republic of Croatia have been assigned to projects in Croatia;
the Croatian Bank for Reconstruction and Development • Functioning as the national contact point for
(HBOR). cooperation with EIAH; and
• Establishment of bilateral cooperation with other
As mentioned, EIF is a part of the EIB Group, and its national development banks (NDBs) in implementation
main objective is to provide support to European SMEs of the Investment Plan for Europe as well as carrying out
by facilitating their access to financing. EIF designs all other activities with the purpose of implementation
and develops venture capital and growth capital, and/or relating to implementation of the Regulation,
guarantees and microfinancing instruments directed the Investment Plan for Europe and all other existing
precisely at that segment of the market. In this role, EIF and subsequent EU acts with regard to that.
supports EU objectives supporting innovation, research
and development, entrepreneurship and growth and
In the implementation of the Juncker Plan, HBOR
development.
cooperates with relevant state administration bodies,
In line with Decision of the Government of the Republic agencies and other legal entities with public authority
of Croatia1 of 23 September 2015, with regard to to which support implementation of the Investment Plan for
implementation of the Investment Plan for Europe on Europe through national coordinators. Ministries, agencies
the territory of Croatia, the following affairs have been and legal entities with public authority in the Republic of
assigned to HBOR as the national development bank: Croatia which assign one of their representatives as the
__________________________________________
1 Decision on assigning affairs related to cooperation with European Investment Bank and European Investment Fund on implementation of the
Investment Plan for Europe, OG, No. 102/2015.
2 The portal has not yet been established.
19
national coordinator are: Ministry of Finance, Ministry According to the Government of the Republic of Croatia’s
of Economy, Entrepreneurship and Crafts, Ministry of second report on implementation of the Investment Plan
Construction and Physical Plannning, Ministry of Culture, for Europe in the Republic of Croatia for the period from
Ministry of Agriculture, Ministry of the Sea, Transport 1 August 2016 to 31 July 2017, seven projects were
and Infrastructure, Ministry of Foreign and European approved, five of which during the mentioned second
Affairs, Ministry of Environmental Protection and Energy, reporting period (projects 3–8). Approved projects within
Ministry of Health, Ministry of Science and Education, the framework of EFSI in Croatia are5:
Agency for Investments and Competitiveness, Center for
Monitoring Business Activities in the Energy Sector and 1. Risk-sharing for MidCaps and other priorities (HBOR)
Investments and Croatian Agency for SMEs, Innovations – EFSI guarantee amounting to 50 million euros;
and Investments (HAMAG BICRO). The Ministry of Regional 2. InnovFin guarantee instrument for SMEs (HBOR) –
Development and EU Funds coordinates the operation of EFSI guarantee in the amount of 20 million euros;
relevant state administration bodies, agencies and other 3. An infrastructure project (private investor);
legal entities with public authority precisely through 4. EL-TO Zagreb – Highly efficient combi-cogeneration
national coordinators, and ensures cooperation of those power plant (HEP PLC) – EFSI gurantee in the amount
bodies with HBOR . of 150 million euros;
5. Guarantees within the framework of COSME
Overview of use of EFSI funds in Croatia programme (Privredna banka Zagreb PLC) – EFSI
guarantee in the amount of 46 million euros;
In May 2015 Member States sent to the European 6. InnovFin guarantee instrument for SMEs (Zagrebačka
Commision a list of projects valued at a total of banka PLC) – EFSI guarantee in the amount of 10
approximately 1300 billion euros. Among 2000 projects milion euros; and
were Croatian projects valued at 21,5 billion euros – a 7. InnovFin guarantee instrument for
total of 77 projects were initially on the list of projects SMEs (Erste&Steiermärkische Bank and
intended for financing from the Investment Plan for Europe, Erste&Steiermärkische S-Leasing) – EFSI guarantee in
however, the list was narrowed down to cca. 25 projects of the amount of 100 million euros.
strategic importance valued at 9 billion euros, foreseeing
participation of the private sector, that is, public-private On 14 June 2016 EIF and HBOR signed the first agreement
partnerships. Croatian projects applied for financing on SMEs within the framework of InnovFin programme,
were mostly from the sectors of transport infrastructure, with ensured EFSI support. The agreement is intended
energy and environmental protection3. for innovative companies in Croatia which are offered
guarantees for bank loans in the following two years, as
Among Croatian projects listed there were projects the result of a guarantee provided by EIF and supported by
intended for co-financing from European funds, including Horizon 2020 programme.6 According to that agreement,
a list of major projects from „Competitiveness and it is expected that EU support to innovative Croatian
Cohesion 2014-2020“4 Operational Programme. This is companies will generate a loan portfolio valued at 20
precisely what should be avoided. With the help of EFSI million euros by the middle of this year.
guarantees and loans, the state should finance high risk
profile projects ready for implementation which cannot On 21 November 29016 HBOR and EIB signed a Risk-
obtain financing from ESI funds or can use EFSI funds to Sharing Model7 guarantee contract, with which EIB
obtain funds for co-financing EU projects, thereby realizing provides HBOR with support amounting to 50 million
synergy with European Structural and Investment (ESI) euros through a guarantee for financing the so-called
funds. The objective is not using EFSI funds and leaving MidCap (companies with 250 to 3000 emloyees) projects
Cohesion Policy, that is, ESI funds, unused. EFSI must not in Croatia. This is the first EIB project of this kind in Croatia,
represent a competition to ESI funds. and is implemented under an EFSI guarantee. Within
the framework of the Risk-Sharing Model, EIB provides
__________________________________________
3 It is important to note that inclusion of a project on the European Commission indicative list does not represent a guarantee for obtaining funds
from EFSI. For projects ready for implementation EIB initiates an evaluation process, in line with its standard procedure. The overall project approval
process usually lasts six months.
4 Competitiveness and Cohesion 2014-2020“ Operational Programme is the basic programmatic document for implementing EU Cohesion Policy,
which also contributes to investment for growth and workplaces through encouraging investment into infrastructure and providing support to devel-
opment of entrepreneurship and research activities. Croatia has 6,831 billion euros at its disposal within the framework of the Programme
5 Furthermore, eight potential investment projects which could be realized in the following three years have been identified in the reporting period,
however, there is no detailed information on them as yet.
6 Horizon 2020 programme is an EU framework programme for research and innovation.
7 The Risk-Sharing Model implies a mode of implementation of the loan programme by HBOR in cooperation with commercial banks wherein HBOR
and the commercial bank share the risk of recovery of placed loans in the following manner: (a) the commercial banks provides a loan in the amount
of 50 % of the total loan amount at the least, from its own funds as a rule; (b) HBOR provides a loan of up to 50 % of the total loan amount, with insur-
ance instruments common in banking operations.
20
HBOR with a guarantee in the amount of 50 million euros sectors of industry, services and tourism, as well as public
for partial coverage of the risk according to the existing and private companies investing in infrastructure and
portfolio of loans approved to MidCap companies, which environmental protection, and knowledge-based projects.
can amount to 100 million euros at the most and which In July 2016 HBOR and EIB signed the second financing
meets criteria agreed on in advance between HBOR and contract in the amount of 250 million euros for the needs
EIB. The final list of existing loans which will be covered by of financing SME projects. By signing this contract, HBOR
an EIB guarantee has not yet been defined, but is expected also became involved in the implementation of a European
to be prepared during this quarter.8 Commission and EIB programme for youth employment
(Jobs for Youth Initiative).
Considering that this is an indirect Risk-Sharing Model,
the EIB guarantee will cover the existing loan portfolio Furthermore, within the framework of cooperation with
in accordance with the corresponding guarantee rate for EIF, Privredna banka Zagreb PLC signed a contract on
MidCap companies and other priorities. Therefore, for now implementation of COSME in the amount of 46 million
EIB will not assume the risk of new, but exclusively existing, euros, allowing SMEs to access loan products. Furthermore,
directly approved MidCap loans, which will allow HBOR to UniCredit Group signed an agreement with EIF within
assume additional risks and increase credit activity in the the framework of InnovFin – guarantee instrument for
amount of 100 million euros towards MidCap companies SMEs programme in the amount of 160 million euros.
and other priorities. As for the selection procedure of For Croatia, 10 million euros for SMEs aimed at research
projects from the existing portfolio, a financial and legal and development activities were ensured through
in-depth analysis of projects proposed to EIB by HBOR Zagrebačka banka PLC. EIF, Erste&Steiermärkische Bank
is in progress and it will soon be known which projects and Erste&Steiermärkische S-Leasing signed a guarantee
meet all EIB criteria for entering the portfolio for which contract within the framework of InnovFin programme,
EIB is ready to provide a guarantee. HBOR has more than which will allow Erste bank to ensure loans and leases for
enough loans in its ledgers which it can propose for an EIB SMEs in Croatia in the amount of 100 million euros.
guarantee.
In 2017 the EIB Group ensured 590 million euros
On the other side, the Risk-Sharing Model implies that for new loans, guarantees and equity investments
HBOR approve new loans to MidCap companies and in Croatia – EIB ensured loans in the amount of 538
other priorities 36 months after the guarantee contract million euros, whereas 50 million euros related to
between EIB and HBOR has entered into force at the guarantees and equity investments into SMEs by EIF. It
latest. In other words, HBOR will allocate 50 million euros was precisely in 2017 that EIB’s results in the Republic
of the EIB guarantee to loans already approved, whereas, of Croatia reached the highest level since 2013, with
on the other side, EIB stipulates that in the following 36 payments in the amount of 729 million euros, that
months HBOR approve new loans in the amount of up to is, 28 % more in relation to the preceding year. As
100 million euros which will not be covered by an EIB to financing within the framework of EFSI in 2017
guarantee, but for which HBOR will find new financing (data until January 2018), financing in the amount of
sources. 187 million euros was approved to Croatia from that
fund, whereas expected EFSI-related investments are
The criteria according to which new loans will be approved estimated at 745 million euros.
are not defined at this moment, however, it is already
known that the requirements will be almost identical to
requirements EIB usually sets when HBOR uses EIB funds
for financing MidCap companies. Although HBOR approves
loans in line with its loan programmes, EIB requirements
are already incorporated into most of its programmes.
According to HBOR’s financial report for 2016, at the start

of 2014 EIB and HBOR also signed two financing contracts
within the framework approved by EIB in the amount of
800 million euros for financing SMEs and MidCaps in the
Republic of Croatia. The first contract on financing MidCap
projects was signed on 17 February 2016 in the amount
of 150 million euros. The funds are intended for financing
the mentioned companies’ projects, primarily in the
__________________________________________
8 After the initially carried out due diligence process, there was no success in the preparation of the list of acceptable exposures, and thereby during
the first quarter of this year HBOR recommenced the procedure of review of acceptable exposures in cooperation with EIB representatives. HBOR’s
expert services are now systematically considering potential exposures which would be proposed for the new round of the due diligence process.
21
In 2018 last year’s business momentum related to financing in different sectors such as tourism (Istrian Riviera
Development Project) and green entrepreneurship9 will continue. Hereafter follows a short overview of several projects
in the Republic of Croatia financed with EFSI support, based on data available at the official website:
Project title DUBROVNIK AIRPORT RECONSTRUCTION AND DEVELOPMENT

Project holder Dubrovnik Airport Ltd.
The first phase of the project (development phase) has been completed and the new airport
was put in operation on 15 May 2017. The contract for the commencement of the second
Project status
phase (reconstruction phase) was signed on 7 September 2017, and its completion is planned
for April 2019.
220 million euros (cca. 172 million euros for the first phase and 50 million for the second
Total expenses
phase).
Financing EFSI guarantee for an EIB loan in the amount of 32,5 million euros
On 23 April 2015 EIB brought a Decision on co-financing Dubrovnik Airport Development
Project, whereby that project, valued at 225 million euros, became the first project in Croatia
financed by EFSI. Of the mentioned amount, 32,5 million euros were received as an EIB loan
under an EFSI guarantee. In July 2016, 160 million euros were approved for financing from
the European Regional Development Fund, whereas the remainder is financed from EIB and
HBOR loans (32,5 million euros) and the airport’s own funds in the amount of 34,5 million
Description
euros. This project is a good example of desirable synergy of funds from EFSI and ESI EU funds.
The project includes reconstruction of the runway, construction of new parking positions,
the first modern fuel facility of its kind in Croatia, whose pipes will reach aircraft parking
positions, construction of a new administration building, a sewage system and implementation
of numerous sub-projects required for regular functioning of the airport. The new airport was
put in operation on 15 May 2017.
Project title HBOR RISK SHARING FOR MIDCAPS AND OTHER PRIORITIES
Project holder HBOR
Project status Approved on 22 September 2015, contract signed in November 2016
This is the second Croatian project implemented within the framework of the Juncker Plan.
Within the framework of a Risk-Sharing Model, EIB provides HBOR with a guarantee in the
amount of up to 50 million euros for partial coverage of risk according to the existing portfolio
Description of loans approved to MidCaps, which can amount to 100 million euros at the most, and which
meets particular criteria. The project was designed with the aim of attracting commercial
lenders and supporting MidCaps and other priority projects financed by HBOR. This was
already mentioned earlier.
Project title EL TO ZAGREB

Project holder Hrvatska elektroprivreda PLC
Project status Approved on 15 June 2017
The project of construction of a new combi-cogeneration gas facility for KKE EL-TO Zagreb is
implemented for the purpose of harmonization of production units with Directive 2010/75/EU
on industrial emmissions (LCP Directive) and with the aim of meeting borderline emission values
prescribed by the environmental permit. The new combi-cogeneration facility will thereby replace
Description
two obsolete units at the location (Blocks A and B), and ensure safe supply of heat for consumption
in the western part of Zagreb, that is, hot water connected to the central heat system and steam for
industrial consumers. Financing with the support of the Investment Plan will improve the safety of
electrical energy supply in Croatia and reduce the level of pollution.
__________________________________________
9 EIB signed a loan contract with HBOR in the amount of 15 million euros, which will support investment into projects related to preserving
biodiversity and adaptation to climate change, with special emphasis on green infrastructure.
22
Project title ISTRIAN RIVIERA DEVELOPMENT
Project holder Valamar Riviera PLC
Project status Loan contract signed on 6 March 2018
Financing of this project represents the first transaction in the Republic of Croatia which EIB
signed with a company from the private sector in which EU budgetary guarantee support
through EFSI was used. With this loan EIB will co-finance the completion of construction of
the Valamar Girandella Resort, that is, construction of the first Kinderhotel 5* in the portfolio
Description
of Valamar Riviera, with the opening of which in April this year repositioning of the Rabac
destination into a leading resort destination for guests with high purchasing power will be
completed. This loan is a supplement to an indirect loan in the amount of 44 million euros
awarded to Valamar by HBOR in March 2017.
Project title About the project

For the purpose of investing into state of the art equipment, the company was approved a PBZ
loan insured by EIF in line with the Investment Plan for Europe: financing is directed at purchas-
ČES DENTAL CENTER
ing equipment, such as a 3D printer which can produce different orthodontic accessories. At the
moment the Dental Center has 20 employees, and intends to expand.

EIAH offered free technical assistance services for the preparation and structuring of projects for
the CHC Rijeka project. Within that framework, consultants selected in the second half of 2017
helped CHC Rijeka draw up a Strategic Work Plan for the hospital, which will show which concrete
measures are intended to be undertaken with regard to the organizational scheme, and thereby
to CHC Rijeka’s employment policy, the correlation of this plan in relation to the National Health
CHC RIJEKA – NEW HOS-
Development Strategy of the Republic of Croatia, but also other medical and demographic plans, as
PITAL BLOCK CONSTRUC-
well as a work plan for the provision of non-medical hospital services, environmental protection
TION
aspects of the project etc. For the needs of its analysis of the project, on 8 and 9 February 2018 EIB
held a due diligence for the project, which was attended by representatives of the Council of Europe
Development Bank (CEB), who confirmed their interest in further monitoring of this projects and
are, according to existing plans, prepared to obtain permits with the aim of concluding new loan
contracts with HBOR in the following months.
23
State of play with regard to use of
EFSI funds in six candidate and potential
candidate countries for EU membership
EFSI is primarily intended for EU Member States, whereas contribution to EFSI through ensuring funds or providing
candidate countries1 and potential candidate countries2 guarantees (the latter relates only to Member States),
are recommended to use funds available to them and subject to agreement of the Steering Committee, without
mostly insufficiently used, such as the Western Balkans participation in the management of EFSI; (2) in investment
Enterprise Development & Innovation Facility (WB EDIF)3, platforms as sponsors/investors or implementing bodies;
InnovFinn Equity fund and Instrument for Pre-Accession (3) in individual projects financed by EFSI as co-financiers.
Assistance (IPA II)4. In addition to the fact that those are
specific instruments for promoting regional development, In 2016 the EIB Management Committee issued a
it is undoubtedly easier to obtain financial support from document under the title of „Geographical eligibility of
those funds than to compete for it with 28 full Member cross-border operations involving non-EU entities under
States. Nevertheless, the opportunity for using EFSI EFSI”.6 The document is focused on Article 8 of Regulation
funds for candidate countries and potential candidate (EU) 2015/1017, relating to EIB guarantees for financing
countries for EU membership is specifically stated in or investment operations covered by the Regulation and
Article 8 of Regulation (EU) 2015/1017, in the context of the EFSI Agreement if those operations are implemented
participation in cross-border projects which, in addition within the Union or with participation of subjects which
to those countries, mandatorily include at least one EU are seated or established in one or more Member States,
Member State. and extend to include one or more third countries. The
purpose of the document is to clarify Article 8 in the
In order to maximize EFSI’s impact, it is very important context of investment into cross-border projects including
that it is open for participation of countries outside the non-EU countries.
EU. The Investment Plan for Europe and its main pillars are
already opening numerous opportunities for countries According to the mentioned document, the typology of
of Southeast Europe with regard to development of their cross-border projects eligible for EFSI funding covers:
economies and preparation for using EFSI funds as full
EU Member States, and their position has additionally • Operations including mutual physical connectedness
improved with the entry into force of the new Regulation between at least one Member State and a third country
(EU) 2017/2396. By now third countries could already or territory fulfilling the requirements in line with
participate in EFSI projects, directly or through joint Article 8 (b) – such projects can, inter alia, take the
investment platforms, however, with an amendment form of construction of transport tunnels or bridges,
to Regulation (EU) 2015/1017 two new types of those electrical energy supply (for example, electrical cables
platforms have been introduced into the structure of EFSI; or gas pipelines) or setting up telecommunication
cross-border and regional. This clearly confirms that in interconnectors (for example, broadband internet
its past application EFSI was not equally focused on all connectors). These eligible physical interconnections
regions of the Union, but that it is intended to balance and will not include the parts of a wider cross-border
expand its application in that sense. There are three ways project if the part being financed does not physically
in which third countries can participate in EFSI through cross the border between the EU Member State and
the mentioned platforms5: (1) on EFSI level, by direct the eligible third country or territory. For example, a
__________________________________________
1 Candidate countries are Albania, Montenegro, Former Yugoslav Republic of Macedonia, Serbia and Turkey. This part of the publication relates to six
Western Balkans countries, and is thereby not completely applicable to Turkey.
2 Potential Member States are Bosnia and Herzegovina and Kosovo.
3 For the purpose of providing support to economic recovery of the Western Balkans, new infrastructure projects and projects from the area of market
competition, as well as from the area of development / training of human resources, have been approved WB EDIF.
4 The purpose of this instrument is to facilitate the transition into the status of Member States for candidate countries and potential candidate coun-
tries. In the programming period 2014-2020, total programme budget amounts to 11,7 billion euros. About 4 % of those funds will be distributed
for cross-border cooperation programmes among EU Member States and IPA II beneficiary countries, in accordance with their needs and priorities.
5 http://www.eib.org/attachments/general/efsi_rules_applicable_to_operations.pdf.
6 http://www.eib.org/attachments/strategies/efsi_steering_board_cross_border_operations_en.pdf
24
project of construction of a highway connecting EU the form of framework programmes, loans or EFSI
Member States with a third country, but in which the investment platforms established or managed by a
part for which EIB financing through EFSI is requested body established/founded in an EU Member State,
includes only works carried out in that third country and which support construction of energy-efficient
would not represent an EFSI cross-border operation. buildings in an EU Member State and an eligible
In order for the project to be eligible, at least 50 % of third country or territory. In order to be eligible, such
investment expenses must be accounted for in the EU. operations should prove that the projects supported
• Operations including mutual connectedness between in the eligible third country or territory will bring
at least one EU Member State and a third country or direct and verifiable benefit to (investment into) the
territory which meets the requirements in line with EU, that they support EFSI general objectives, and that
Article 8 (b) – such projects can, inter alia, take the at least 80 % of eligible expenses of investment into
form of construction of telecommunication systems the projects is accounted for in the EU, whereas the
(including satellite telecommunications) with relay remaining components should be accounted for in the
transmitters or similar equipment in eligible third eligible country or territory, in line with Article 8 (b).
countries or territories when the telecommunication • Operations including cooperation with EU financial
system has been developed by bodies seated or intermediaries aimed at providing support to final
established in several Member States and put in beneficiaries, especially SMEs, which are seated in
operation in those Member States, and when that at least one EU Member State and a third country
system expands to include an eligible third country or territory meeting the requirements in line with
or territory. This, for example, can include projects Article 8 (b) – such operations can take the form of
through which European transport management multi-beneficiary intermediated loans or risk-sharing
systems are put in operation in EU Member States operations, for example with national development
and neighbouring countries outside the EU. In order banks, including final beneficiaries in the EU and the
for a project to be eligible, at least 50% of eligible eligible third country or territory. Such an operation
investment expenses must be accounted for in the EU. could, for example, be carried out in cooperation with
• Operations including a product or service developed a development agency in order to provide support to
in an EU Member State, but whose implementation SMEs (and MidCaps) in particular regions of the EU
includes expenses in a third country or territory Member State and foreign territories according to
meeting the requirements in line with Article 8 (b) Article 8 (b) of Regulation 2015/1017 relating to that
– such projects can take the form of RDI projects Member State. In order for an operation to be eligible,
with a single objective, including eligible expenses in the financial intermediary must be contractually
eligible third countries or territories, for example, in obliged that at least 80% of the final beneficiaries
the case when testing vaccines for a particular disease portfolio will be accounted for in the EU, and that the
must be carried out in an eligible third country or remainder of the portfolio will be accounted for in the
territory. They can also take the form of investment eligible third country or territory in line with Article 8
into new production capacities for the production of (b). For the purpose of clarity, those eligible operations
new, energetically cleaner machines by a production will only include operations including financial
company from an EU Member State, which includes intermediaries seated or established in the EU.
investment into new production capacities in an • Operations including EIB equity interests in funds –
eligible third country or territory, with regard to that in order to fulfil the EFSI regulation, an EU guarantee
part of the components or materials required for can also be awarded for EFSI financial and investment
production of those machines in the EU, with a direct operations in which EIB invests in funds whose activity
and verifiable link showing that investment in the EU is not exclusively limited to EU Member States, under
is subject to investment in the eligible third country certain conditions. Criteria listed below will be applied
or territory. In order for those projects to be eligible, to investments into funds, where such funds are of
at least 80 % of eligible investment expenses must benefit for an EU guarantee under the Infrastructure
be accounted for in the EU, whereas the remaining and Innovation Window:
components should be accounted for in the eligible o EIB is permitted to invest into funds with at least
third country or territory, in line with Article 8 (b). one joint investor. Participation in those funds will
Those eligible operations will include bodies seated or not exceed 50 % of the total amount of undertaken
established in the EU and will not include projects in committments (including EIB). Other investors can be
which the borrower is a body seated in a third country established in the EU or in third countries.
which is expanding to include EU Member States. o By the end of the investment period, the funds will invest
• Operations including framework cooperation with the at least: a) 60% of total funds invested in countries
aim of financing portfolios of projects with a thematic covered by Article 8 of Regulation 2015/1017, b) 80 %
focus, including projects in at least one EU Member percent of total funds invested in countries covered by
State and an eligible third country or territory, in the Article 8 of Regulation 2015/1017.
line with Article (b) – such operations can take
25
From the Communication from the Commission to encourage investment into projects relating to migration,
the European Parliament, the Council, the European which have had an enormous impact precisely on the area
Economic and Social Committee and the Committee of the of Southeast Europe. Hereafter follows a table overview
Regions of June 20167 it is perceivable that opportunities of funds drawn from the EU by candidate countries and
for using EFSI funds by countries outside the EU need to potential candidate countries for EU membership.
be further investigated. In the Communication it is stated
that the Commission will assess the opportunities of There are still no projects co-financed by an EFSI guarantee
using EFSI-type models for investment into developing in countries outside the EU, and hereafter is provided
countries through a scheme which would allow for solving an overview of other EU financing sources intended for
concrete bottlenecks for investment by international candidate countries and potential candidate countries
financial institutions (IFIs) and thereby attract private which shows that, considering the presence of other
actors to invest in those areas. In line with that, different instruments, there is potential for using EFSI, but that
international financial institutions should be allowed those countries require additional promotional activities
to expand their operations in challenging investment and provision of technical assistance in the preparation of
environments of post-conflict countries, as well as projects.
Amount of assigned / allocated

Candidate country Source of EU funds
funds (€)
Pre-accession funds (2007 – 2020) 1,24 billion
EIB loans 130 billion
Albania WB EDIF (as of 2009) 92,5 million
Sector budget support 135 million
Support for floods in 2015 14,9 million
Pre-accession funds (2007 – 2020) 506,2 million
Montenegro EIB loans 451 million
WB EDIF (as of 2009) 81 million
Macedonia EIB loans 660 million
WB EDIF (as of 2009) 93,4 million
Serbia EIB loans 4 billion
Pre-accession funds (2007 – 2020) 690 million
EIB loans 1,7 billion
Bosnia and WB EDIF (as of 2009) 122 million
Herzegovina Support for 2014 floods 41 million
Support to refugees under the Regional Housing
10 million
Programme
Kosovo EIB loans 160 million
Source: Drawn up by the author based on European Commission data from February 2018. Available at: (https://ec.europa.
eu/neighbourhood-enlargement/news_corner/news/strategy-western-balkans-eu-sets-out-new-flagship-initiatives-and-
support-reform_en, accessed on 9 April 2018.
__________________________________________
7 https://ec.europa.eu/commission/sites/beta-political/files/1_en_act_part1_v11.pdf
26
Technical assistance for preparation and
increasing the visibility of projects
The European Investvent Advisory Hub (EIAH) and the Microcredit Provision (JASMINE).
European Investment Project Portal (EIPP) represent
the second part of the Investment Plan for Europe, and There is a significant number of projects potentially
have been set up in order to facilitate the attainment of sustainable from the economic and technical standpoint,
the European Fund for Strategic Investments objectives, but which are not financed due to lack of security and
especially with regard to activities of identification and transparency within the European Union. This is often due
preparation of projects. to private investors being unaware of those projects or not
having enough information in order to assess investment
The European Investment Advisory Hub is a joint initiative risks, including regulatory risks. With EIB’s support,
of the European Commission and EIB, designed with the the Commission has participated in the promotion of
aim of speeding up investments by offering a single access sustainable projects by having established a transparent
point for different types of supports and investments portal for current and future projects within the Union
in all phases of the project cycle, whereas the European which are suitable for investment – the European
Investment Project Portal is an Internet portal established Investment Project Portal. The European Investment
and managed by the European Commission which allows Project Portal ensures that information regarding
projects holders and promoters from the public or private investments are regularly and structuredly published in
sector of EU Member States to make contact with potential order to allow investors to access transparent and reliable
investors from around the world. data. Inclusion of a project in the project portal is free of
charge for all types of project promoters. Member States
EIAH provides support to development and preparation can also present investment projects on their territories
of projects based on expert knowledge of the Commission, on the portal in cooperation with regional and local bodies.
EIB, national development banks or institutions, as well
as management bodies of the European Structural and European Investment Advisory Hub – a
Investment Funds. Based on Regulation (EU) 2017/2396 of
the European Parliament and Council which was brought in single contact point for investors and
December 2017 and entered into force on 1 January 2018, project holders
provision of more directed technical assistance services on
the local level by the European Investment Advisory Hub The European Investment Advisory Hub and the
has been facilitated. This support includes provision of European Investment Project Portal are important for
targeted support regarding the use of technical assistance identification and preparation of projects, and have been
for structuring projects, innovative financial instruments, set up in order to facilitate the attainment of European
public-private partnerships and, as required, counselling Fund for Strategic Investments objectives. The main
with regard to relevant issues concerning European Union purpose of EIAH is providing investors, projects holders
legislation, taking into account the specificities and needs and public management bodies with advice regarding the
of Member States with less developed financial markets. establishment, development and preparation of projects.
EIAH’s advantage is the provision of free expert knowledge
to public project promoters in order to ensure equitable The European Investment Advisory Hub and the
access to EFSI financing. EIAH especially relies on good European Investment Project Portal have been
practices of existing programmes such as European Local established with the aim of:
Energy Assistance (ELENA), European Energy Efficiency • Achieving maximum use of existing technical
Fund (EEEF), Joint European Resources for Micro to assistance available to investors and project holders,
Medium Enterprises (JEREMIE), Joint Assistance to • Provision of additional advisory services, and
Support Projects in European Regions (JASPERS), Joint • Increasing the visibility of investment projects in the
European Support for Sustainable Investment in City EU.
Areas (JESSICA) and European Code of Good Conduct for
27
The Advisory Hub1 is a single contact point for investors of nominating special representatives for European
and project holders seeking advice on investment projects investments in its representative bodies in Member
and their financing. The Hub is managed in accordance States, who would cooperate with competent Commission
with an agreement between the European Commission services within the framework of a single investment
and EIB. The Hub’s operation is based on expert knowledge policy group. At the start of 2018 the Ministry of Regional
and existing advisory services provided by EIB and the Development and EU Funds and EIB signed a contract
European Commission, such as fi-compass or JASPERS. on the provision of advisory services to Croatian public
The Hub’s operation also relies on the expert knowledge and private companies for the purpose of identification,
of national development banks and institutions, as well as preparation and development of investment projects. The
European Structural and Investment Funds management signed contract on the provision of advisory services over
bodies. The Hub can conclude contractual partnerships a period of 12 months, financed in entirety by EIB, will
for the purpose of cooperation with national development contribute to establishment of more efficient investment
banks, institutions or management bodies. planning by identifying deficiencies in the existing system,
proposing measures and providing recommendations
Services provided by the Advisory Hub include: for improvement, and contribute to the realization of
• Provision of technical assistance to competent bodies investment projects. The Advisory Hub provides services
and project holders, in the sectors of research and development, energy,
• Provision of assistance to project holders in order for transport, circular economy, environmental protection,
them to be able to develop their projects so as to meet information and communication technologies and social
eligibility criteria in line with the EFSI regulation, infrastructure.
• Increasing the availability of EFSI support in the EU
through more efficient use of local knowledge, and Interested public and private companies can address
• Operation as a platform for exchange of experiences the Hub by submitting a request for advisory support
and expert knowledge on project development. through the Hub’s Internet portal - http://eiah.eib.
org/find-support/index. Once the request has been
In its proposal for extenuation of EFSI, the Commission submitted, the Hub’s employees will assess the need
stresses that in the forthcoming period the European for providing advisory support and set about defining
Investment Advisory Hub will provide technical assistance the model of cooperation and contract signing.
on the field, based on agreements with relevant local
actors. The Hub can provide support in the activities of designing
Furthermore, more directed and adapted technical project proposals, identification of requirements,
assistance services for projects including several elaboration of project activities, drawing up analyses,
Member States and projects for combining EFSI with carrying out research and project implementation.
other financing sources such as European Structural and Depending on the project proposal requirements, the
Investment Funds, Horizon 2020 and Connecting Europe Hub’s employees can also recruit external associates. The
Facility will be ensured. In this context, in the EFSI 2.0 Hub’s services are free of charge for the public sector,
proposal it is planned that the European Investment whereas for the private sector there is a possibility of
Advisory Hub will actively contribute to the objective financial compensation, depending on the type of the
of sectoral and geographical diversification of EFSI by advisory service concerned. Fees paid by SMEs are limited
supporting EIB in its efforts to initiate new projects to one third of the value of technical assistance provided.
on the field in less developed Member States. In line Hereafter follow several examples of EIAH technical
with that, the Commission will consider the possibility assistance:
Area Technical assistance examples

Renewable energy In the area of renewable energy sources the Hub provides advisory support for the development
sources projects of basic project strategies, drawing up of demand analyses and investment studies.
Plans for support The Hub provides support to a consortium of non-governmental associations covering different
to public companies areas such as the healthcare and social sector, employment and training, social incubators,
and the nonprofit and provides assistance to disabled or elderly persons, by drawing up market analyses and
sector business plans for structuring the organizational and financial model of the consortium.
In the area of development of environmental protection projects, the Hub provides support
Environmental
in the development of business plans and initiating activities for seeking possible financing
protection projects
sources.
Public healthcare The Hub provides support to countries in the area of public healthcare infrastructure
infrastrucure construction projects by drawing up financial plans and plans for the realization of project
construction activities.
projects
__________________________________________
1 More on the Advisory Hub at: http://www.eib.org/eiah/index.htm
28
The project portal – increasing the visibility In which languages can a project be applied?
of projects and finding foreign partners Project applications in all EU official languages are ac-
ceptable. If the project is delivered in another language,
In order to increase transparency with regard to the the European Commission ensures free translation to
opportunities for investment in the EU, the European English.
Commission established the European Investment
Project Portal (EIPP). EIPP is part of the Investment Plan What is the smallest size required for a project to be
for Europe initiative, and is intended for supporting eligible for publication on EIPP?
investment into the real economy. With EIPP’s assistance, Currently it is 1 million euros. If a project is smaller
project promoters from the public and private sector than the smallest project size, project promoters should
seated in the EU can increase the visibility of their consider the possibility of linking with similar projects
projects in a simple way. The presentation of projects in other regions and submission of a joint, larger project.
on EIPP is structured and user-friendly, so as to attract
investors from all over the world, who will be able to Does implementation of projects published on EIPP
enrich their portfolio with additional European projects. have to last three years?
The European Commission established EIPP as a link No. In line with criteria for participation, it is only
between project promoters in the EU and investors required that project implementation commences
from around the world in order to promote and speed within three years from its submission to EIPP.
up the use of a larger number of opportunities for
investment in the EU. The portal is intended to increase For how long will a project be published on EIPP?
the visibility of existing opportunities for investment in In the course of three years. During that time project
the EU through the establishment of a central platform promoters are encouraged to deliver information on the
for promoting projects in the EU, using a harmonized and progress of their projects. Following the expiry of three
structured format. EIPP is one of numerous Commission years, the project can be applied for publication again
initiatives for restoring investment activities in the EU. if the promoters consider that its publication on the
Herafter are presented the most common questions and portal could still be useful.
answers on delivering projects for publishing on the How can an interested party make contact with the pro-
European Investment Project Portal. moter of a project published on EIPP?
Through an Internet form. The form can be found on
Can anyone deliver a project for publishing on EIPP? the portal, as well as the name of the organization of
The promoter of a project intended to be published the promoter concerned, but it does not contain specific
on EIPP must be a public body of a Member State or a contact data. Thereby promoters can choose not to reply
private/public entity established in a Member State. to unwanted contacts.
Individuals and legal entities undergoing bankruptcy, Can cross-border projects be applied for publication on
liquidation or similar proceedings are not allowed to EIPP?
deliver projects to the portal. The project promoter must
be an organization authorized for presenting projects. Yes, under the condition that investment is carried out
in all stated EU Member States. Cross-border projects
Will the European Commission or a competent body implemented in cooperation with third countries are
verify project quality? also allowed to be applied for publication, under the
The Commission verifies projects based on criteria for condition that the investment is at least partially carried
publishing projects on the portal defined by Commission out in an EU Member State.
Implementing Regulation (EU) 2016/1942, as amended
by Commission Implementing Regulation 2017/919. Source: Drawn up by the author based on data from the
The purpose of EIPP is not to replace the usual in-depth official website of the European Investment Project Portal
analysis procedure which investors must carry out prior (EIPP) https://ec.europa.eu/eipp/desktop/hr/index.html,
to making investment decisions. accessed on 9 April 2018.
Is there a fee to be paid for submitting projects?
No. Submission and publication of projects are free of
charge for all project promoters from the public or pri-
vate sector.
When will a project be published on EIPP?
Project publication can be expected within 45 working
days from the date of submission. Publication depends
on whether the project is clearly described and
whether requested information have been immediately
delivered.
__________________________________________
2 Više o portalu za projekte: https://ec.europa.eu/eipp/desktop/en/index.html
29
At the moment, more than 250 projects from the sectors of energy, digital economy, transport, social infrastructure,
environmental protection, agriculture and rural development, as well as SME projects, including 15 projects from the
Republic of Croatia are published on the portal. Hereafter follows a brief overview of several projects in the Republic
of Croatia published on the portal:

The project includes investment into a new production facility with total power of 600
MW through stage construction of a Combined Cycle Power Plant (CCPP) near Slavon-
CCPP Slavonski Brod ski Brod (CCPP Slavonski Brod). The net power of the first stage of CCPP Slavonski Brod
amounts to cca. 240 MW. Estimated total investment amounts to 450 million euros, and
estimated investment in the first stage amounts to 190 million euros.

The project includes construction of a nautical tourist port with a maximum capacity
of 400 berths at the location „Pod cestom“ in the Baćina area of the town of Ploče. Total
project area size is 9,33 hectares, of which the the inland part accounts for 1,34 hectares,
whereas the sea surface accounts for 7,99 hectares. Planned capacities include a total of 7
piers for a total of 224 vessels of different sizes (up to 35 meters). According to the existing
conceptual design there are two variants of development of this project. According ot
the conceptual design, the first variant includes construction of 282 berths, a parking
Nautical Tourist Port
lot for 101 automobiles, dry berths, a travel lift or dock, as well as conversion of existing
Ploče
buildings into a restaurant, reception, stores and storage spaces. The second variant
is an extended version of the first one, wherein, in addition to the objects constructed
in the first part, full commercialisation of the area is planned, as well as construction
of a hotel with 140 beds, additional berths (up to a total of 400) and a building with
stores and storage spaces, and with 240 parking spaces. Total estimated value of the first
variant amounts to 6 million euros, and the value of the second variant is estimated at an
additional 15,5 million euros.

Construction of the Western Žabica Complex will allow for operational activity of the
Rijeka bus terminal with associated contents such as a parking lot and commercial
contents, as well as expansion of the pedestrian zone in the town centre. The project
includes construction of a bus terminal complex with a bus garage (cca. 11.500 m²), a four-
Wester Žabica Complex level public garage with 940 parking spaces (cca. 26.000 m²) and business premises (cca.
3.600 m²). In addition to construction of the terminal, the project includes construction
of a new access road along the ground level of the complex, extending to Riva Street,
reconstruction and a new design of Žabica Square, as well as reconstruction of the
entrance to the Rijeka port area. The estimated value of the project is 52 million euros.

Zelina Aquapark is a project of construction of a sport and recreational complex at the
location of the former Zelina bathing resort, covering a total surface area of 44.547
m2, owned by the Town of Sveti Ivan Zelina, and the concept design provides for stage
construction of a main building (including a restaurant with a separate ceremonial hall,
three bars, a night club, management offices, rescue services, staff sanitary and wardrobe
Zelina Aquapark
premises, storage spaces, technical and other auxiliary premises), an access square in
front of the main building, five open space swimming pools with sun decks, grandstands
and water attractions (a water castle, a tobbogan complex with an access tower) and
separate catering and sanitary buildings. The estimated value of the project is 5 million
euros.

The project includes activities of reconstruction and upgrading of the former Medical
Center and its conversion into a hotel with 39 rooms and 84 beds. Construction of
Delnice Sport Hotel
associated contents, that is, a parking lot, a children’s playground, a small park and a
promenade is planned nearby. The estimated value of the project is 1,67 million euros.
30
Activities of the Office
MEP Ivana Maletić’s activities and Solutions for emerging problems such as the migrant and
refugee crisis, youth unemployment, lack of investment,
reports internal security, agricultural crisis, delays in payments
from the EU budget, non-implementation of structural
Maletić: I want Croatia to become one of reforms etc. are being sought on European Union level.
the economically strongest countries in
All those issues are important for us as well. The
Southeast Europe European Fund for Strategic Investments (EFSI), the so-
This year we will celebrate five years of EU membership. called Juncker Fund, is an additional financing source and
We are still facing a lot of work in order to become an an opportunity for financing investments into renewable
active, recognizable and strong Member State which energy sources, circular economy, innovation and new
successfully uses the advantages offered by the European technologies through investment platforms. This fund is
Union, from the Single Market, transfer of technologies and intended to encourage entrepreneurs for realization of
new knowledge, through Cohesion Policy and Common high risk profile projects.
Agricultural Policy to other different financing sources.
My work in the European Parliament as a member of the We are continually working on improvement of the
Committee on Economic and Monetary Policy, Committee visibility of opportunities for financing with EFSI
on Regional Development and Committee on Budgets is guarantees, and our objective is to significantly increase
directed precisely at better positioning of Croatia in the the use of these financing sources in the Republic
European Union and at strengthening Cohesion Policy in of Croatia. That is precisely why we have prepared
the EU budget in order for EU funds to remain a source this special publication: European Fund for Strategic
of encouragement of strong and long-term sustainable Investments – status of implementation, challenges and
development in the forthcoming period. opportunities in the EU with a special review with regard
31
MEP Ivana Maletić is one of the authors and MEP Ivana Maletić leading an EPP hearing on the subject of „Acceleration of
Editor-in-Chief of the book „EU Projects – implementation of Cohesion Policy“ with her colleague Mr. Van Nistelrooij
From idea to realization”
to Croatia and neighbouring non-member countries, and Work on encouraging better use of EU
held a conference on the subject of the opportunities for
financing entrepreneurial and local unit projects with EFSI funds in the Republic of Croatia
guarantees with European Commission Vice President
Jyrki Katainen. We went around all our counties, we organized hundreds
of conferences and meetings with entrepreneurs, farmers,
In addition to investments, achieving economic growth the youth, non-profit organizations, local units and all
also requires changes in the mode of operation. Through other interested parties. We are continuously receiving
the European Semester the European Commission inquiries on the opportunities for finacing projects from
calls on all Member States to put more energy into EU funds. That is precisely why I was one of the authors
implementation of Country Specific Recommendations and Editor-in-Chief of the book „EU projects: From idea to
and ensure stronger support to their economies through realization“.
implementing structural reforms. A book on the European
That is a publication which is intended to contribute to
Semester and economic policies on EU level, as well as
successful use of EU funds in Croatia. First of all, you need
recommendations for Croatia is in preparation and will be
an idea, then knowledge on the opportunities for financing,
published in the course of 2018.
identification of the programme from which realization of
the idea can be financed, and then commences the road
Reforms are not only a concern of the Government
to preparation and implementation of the project. We can
and Brussels, reforms represent the willingness and
achieve more by working together, and each implemented
decisiveness of the Government and the entire society
project represents a success for the entire country.
to change. Only together, by using all opportunities
available to us, by changing and adapting to a new The Resolution on Acceleration of Implementation of
age based on smart investments can we succeed and Cohesion Policy which I had drawn up with the aim of
initiate stronger economic growth. undertaking measures for avoiding loss of EU funds in
particular Member States, especially in Croatia, was
32
adopted at a plenary session in May 2016. Due to
the importance of the subject, the European People’s
Party (EPP) also organized a hearing with experts
from Member States, over which I presided.
With numerous amendments and this resolution I

encouraged acellerated simplification of rules and
procedures, adaptation of Cohesion Policy to the needs
of final beneficiaries, better communication in order
to increase the visibility of Cohesion Policy among
citizens, and especially stability in approaching the
overall policy in cooperation with other colleagues
from the Committee on Regional Development. Member
States also have to carry out their tasks, which implies
improving their financial management systems, solving A workshop on EU funds held at Business Incubator Šibenik
problems which represent an obstacle to the preparation
and implementation of projects, carrying out structural
reforms and building a faster and more flexible
administration, as well as strengthening administrative
capacities.
We prepared workshops with the aim of introducing

all interested entrepreneurs, young people, farmers,
innovators, scientists, officials etc. to the basics of
preparation of EU projects and the opportunities for
financing from ESI funds by 2020, as well as expectations
regarding the future, the period after 2020. We held our
first workshop at the Business Incubator Šibenik upon
request from the director of the Podi entrepreneurial
zone Jakov Terzanović, in order to help reinitiate A lecture on the subject of smart specialization as the future of
educational activities and encourage entrepreneurs, the European Union’s socio-economic development held by MEP
but also the public sector, to continue working on EU Ivana Maletić in Zadar
projects. The workshop was held on 6 April 2018 from
5 pm to 8 pm, and on 7 April from 9.30 am to 12 am.
We introduced the attendants to the opportunities for
finacing projects from EU funds and preparation of
project proposals for applying for EU tender procedures.
Two days is not enough time to learn how to prepare
projects, but it is enough for obtaining basic knowledge
on what is eligible for financing and which are the steps
in the preparation of projects. At the workshop we went
through the objectives to be fulfilled though the use of
ESI funds, the basic principles of Cohesion Policy and the
future.
After 2020 we will receive almost the same envelope,

amounting to 10 billion euros, and thereby it is important
to learn how to prepare projects, but also to become A visit to a seminar for ambasadore seniores of the European
actively involved in defining new strategic documents Parliament’s Euroscola
showing what we will spend funds on. They have to
be a reflection of your needs with criteria adapted to
yourselves. Without working together we will again have
operational programmes financing areas which are not
of interest.
33
„Youth Guarantee: two years later“ conference held on 5 May, A conference on Erasmus+ programme
organized by the European Parliament, Public Information Office
of the Republic of Croatia and Croatian Youth Network
The book “Ready-Set-Go-Erasmus+” MEP Ivana Maletić assuming presidency over

Knowledge4Innovation initiative
We also went through the most important project parts I have initiated the #MOJEUPROJEKT education
and most common mistakes which result with losing programme which included 106 young people who learned
points, demonstrated successful project examples, about EU funds in a practical way – through drawing
showed how to fill out basic forms and pointed out which up projects. During 2016 we prepared 16 projects, and
tender procedures are currently open and which have the education programme was carried out again during
been announced. 2017 in cooperation with Oath to the Virgin Mary for the
Homeland, Magis and SKAC Palma associations, and the
We are preparing a new book on EU projects in which Heart of Jesus praying community.
you will be able to find all the tips and tricks for proper
preparation and implementation of projects. Yount unemployment is a burning issue in Croatia,
therefore I called upon identifying activities and measures
We will go around all the counties, so if you want us to aligned with the needs of young people. We need to stop
visit your city feel free to invite us. adapting young people to our ideas and start working
together and in accordance with their needs. I regularly
Continuing work with young people: We carry provide advice to young people regarding all opportunities
out educational activities in #MOJEUPROJEKT provided by Erasmus+ programme, I have held numerous
programme, and the MEP has become an Erasmus+ education programmes and conferences at universities
programme ambassador for young entrepreneurs. and faculties all over Croatia, and a special large conference
34
on Erasmus+ programme in Zagreb in December
2016. The book „Ready-Set-Go-Erasmus+“, which is an
excellent handbook for preparation and implementation
of projects financed from Erasmus+programme was
presented at that conference.
Due to my continued work with young people and

on policies for young people I have become the
ambassador of Erasmus+ programme for young
entrepreneurs in Croatia, and ambassador of the
Startup Europe Awards competition.
Knowledge for Innovation (K4I)

At the meeting of the Knowledge4Innovation (K4I)
initiative Steering Committee held in January this year European Innovation Summit: A round table on the subject of the
I was elected K4I President, whereas MEPs Andrej future of the Framework Programme
Novakov, Henna Virkkunen, Angelika Mlinar and Paul
Rubig were selected as Vice Presidents.
After K4I had been run by former President of the

European Parliament and Prime Minister of Poland Jerzy
Buzek and Coordinator of the Committee on Regional
Development Lambert van Nistelrooij, who jointly
promoted innovation as an EU priority for almost ten
years, I have the honor to assume presidency over this
important organization which brings together innovation
and science as important European policy priorities.
K4I is an open and independent platform whose aim is

to create sustainable support mechanisms for innovation
and includes a wide range of participants, including
representatives of regions, cities, the academic and
research community, trading organizations, as well as
representatives of technological platforms. In 2009
Members of the European Parliament established the K4I
forum which, with the support of more than 40 MEPs,
by now organized over 500 discussions, conferences
and round tables, as well as nine successful European
Innovation Summit events, attended by more than 40.000
participants and 30 European Commissioners. The
subjects elaborated by K4I mostly concern issues relating
to innovation and knowledge as an important European
policy priority, promoting innovation as a key tool for
encouraging sustainable economic growth, development
of an innovation model with people at the centre of
innovation and incorporating ideas from the Forum into
the market through patent protection, standardization,
public procurement and smart regulation. “Good governance and smart specialization of LRSUs and
solutions for continuing decentralization”
Innovations are of key importance for acceleration of
developement in all areas, from agriculture, transport,
the environment, energy and digitalization to education,
healthcare, social welfare and general changes in the
mode of operation of the public sector.
35
MEP Ivana Maletić holding a lecture on the subject of the Digital A visit of a group of entrepreneurs and representatives of the
Agenda for Europe and opportunities for financing projects from academic community to the European Parliament organized by
EU funds within the framework of the „Croatia 2030 – Identification the Office of MEP Ivana Maletić
of projects important for regional development – development
digitalization in the function of growth of local employment and
income” conference
MEP Ivana Maletić brought young Croatian entrepreneurs, A visit to the European Parliament was also organized on the
innovators and students to the „Science-Innovation-Startups – 950th anniversary of the town of Šibenik
New Opportunities for the Youth” conference which she organized
in cooperation with Portuguese MEP Claudia Monteiro de Aguiar
The European Innovation Summit is an opportunity for „Let the Stars Shine“ initiative
exchange of ideas and good practices between Member
States. At the end of last year, the subject of the European „Let the Stars Shine“ is a joint initiative of nine Members
Innovation Summit was „Turning knowledge and ideas into of the European Parliament (from Croatia, Bulgaria,
value for society“, and I led two discussions on the subjects Belgium, France, Germany, the Netherlands, Poland,
of „Focus on the mission in research and development Romania and Slovenia) launched on 30 August 2017
policy“, aimed at providing recommendations for FP9, that with the aim of encouraging European togetherness
is, continuation of Horizon 2020 programme, and „Open and solidarity, as well as promoting and increasing the
science, open innovation – acceleration of the innovation visibility of quality and creative projects which have had
process“. a positive influence on the lives of citizens in Member
States. The main idea behind this initiative is based on
strengthening communication and visibility of good and
positive projects encouraged in the European Union and
financed from the EU budget.
36
Within the framework of this initiative, MEP Ivana
Maletić organized a call for application of projects to
be presented at the European Parliament, calling on
municipalities, cities, counties and all citizens to fill out
a form and apply projects financed from EU funds which
have had a positive influence on life in their surroundings,
positively surprised with their contents or inspired new
entrepreneurial undertakings and projects in a special
way. The applications received, 69 of them, were evaluated
by a special commission comprised of experts in the area
of Cohesion Policy, and the best five projects were selected
to represent the Republic of Croatia at a conference and
exposition which will be held at the European Parliament
in June 2018, as well as be included in a special European
Parliament publication on EU projects which are bringing
positive changes.
MEP Ivana Maletić organized a conference under the

title of „Good governance and smart specialization of
LRSUs and solutions for continuing decentralization“
in Zagreb. Within the framework of the conference a
round table was held, in which, in addition to MEP Ivana
Maletić, Minister of Regional Development and EU Funds
Gabrijela Žalac, Minister of Finance Zdravko Marić and
Minister of Public Administration Lovro Kuščević also
took part. The participants of the round table discussed
key subjects relating to attaining and encouraging local
unit development through public administration reform,
which is necessary and without which there can be no
rationalization and good governance. Following the initial
presentation and the round table, awards were given to
the winners of the „Let the Stars Shine“ competition.
The approved projects within the framework of the

initiative are: „Revitalization of St. Michael’s Fortress“
project by the Town of Šibenik, „Through Knowledge to
Warm Home“ project by the Town of Petrinja“, „Coworking
Zadar – Innovation Through Collaboration“ project by
the Town of Zadar, „Sisak–Moslavina County – Center
of Gaming Industry“ project by Sisak-Moslavina County
development agency SI-MO-RA Ltd., and „Osteogrow“
project by the Faculty of Medicine in Zagreb.
Information on important EU subjects

and activities of MEP Ivana Maletić
We are regularly reporting on all important discussions,
resolutions and regulations on our website (www.ivana-
maletic.com) and on Facebook (www.facebook.com/ivana.
maletic.cro/), in addition to publishing an informative
monthly magazine in which we elaborate all important
subjects relating to economic policy, EU funds, the budget,
public finance etc., as well as provide reviews and carry
out special analyses comparing the Republic of Croatia A visit of representatives of local and regional self-government
with newer Member States. units to the European Parliament
37
As of the commencement of MEP Ivana Maletić’s work
at the European Parliament we have published 34
issues of the monthly magazine and four special issues:
„Entrepreneurs facing the challenge of use of EU funds“
(April 2014), „Young people facing the challenge of use
of EU funds“ (May 2014), „Comparison of Croatia with
other countries based on international competitiveness
analyses“ (January 2017) and „An EU guide to successful
and sustainable development of cities and municipalities“
(May 2017).
All publications, as well as presentations held at

conferences in cities and at faculties are available on the
official website - www.ivana-maletic.com.
Visitor programmes and internships

Within the visitor programme, Members of the European
Parliament have the possibility of bringing 110 visitors
annually and introducing them to the operation of
European institutions, as well as presenting their work
at the European Parliament, and are allowed to receive
young people as interns at their offices.
Thereby, over 60 young people worked as interns at our

office, who learned much about the operation of European
institutions, the functioning of the EU, and especially
on the modes of decision-bringing at the European
Parliament. That is valuable knowledge which allows
them to cope more easily with affairs they take over in the
Republic of Croatia. We organized more than 20 visits and
by now brought 500 visitors to Brussels and Strasbourg.
MEP Ivana Maletić participated in an official visit of the
Committee on Regional Policy to Slovenia. By bringing visitors from our homeland, Croatia, we wish
to fulfil three objectives: „Our first objective is for our
citizens, as part of the European Union, to familiarize
themselves with European institutions and the operation
of the Parliament because it is important that they feel
what membership in the EU actually means. The second
objective is for our visitors to present our values, matters
of importance in the Republic of Croatia at the European
Parliament. The third objective is exchange of knowledge
and experiences with similar organizations in other
Member States“, pointed out MEP Ivana Maletić, who
organized visits by sportsmen, entrepreneurs, scientists,
young people, assemblies and representatives of local
units.
In addition to a visit, a conference is also almost always

organized, allowing for acquiring new knowledge and
connecting with experts in charge of areas interesting to
MEP Ivana Maletić taking part in a session of the expanded visitors of European institutions.
presidency of the Club of Representatives of the European
People’s Party in Valencia with MEPs Šuica and Zovko
38
MEP Ivana Maletić making a guest appearance on the “From the heart of Europe” show with assistants and co-workers
Alen Halilović and Domagoj Badžim
MEP Ivana Maletić’s reports with regard to the use of EU funds, and was adopted at a
plenary session in Strasbourg on 11 May 2016. Cohesion
Abolition of financial limitations for policy for the financial perspective 2014-2020 has
cultural legacy reconstruction projects changed significantly, and some of the changes include
thematic concentration, focus on results, need for greater
MEP Ivana Maletić was shadow rapporteur for REGI coordination with economic policy, ex-ante preconditions,
Committee opinion on the report on integrated attaining synergy with other programmes, increased use
approach to cultural legacy in Europe. She pointed out of financial instruments etc. MEP Ivana Maletić pointed
the importance of monitoring investments into culture out that all these novelties contributed to improvement
from different sources, as well as providing information of Cohesion Policy, however, Member States are required
on all cultural projects in a single integrated report. She to produce new knowledge and try a different approach.
stood for abolition of financial limitations amounting They should carry out their programming in a completely
to 5 and 10 million euros for an individual investment new manner, establish new management structures,
into cultural legacy reconstruction projects, which is new procedures and new information systems. All that
especially important for the Republic of Croatia which is takes time and we are now facing the fact that in 2016,
rich with historical and cultural treasure, and the needs that is, the third year of the financial perspective 2014-
for investment in the revitalization of particular localities 2020, in most Member States implementation is only just
significantly exceed the set limitations. beginning, and some of them have not yet established rules
of operation and procedures neither for new management
Acceleration and simplification of structures nor for information systems and are facing the
risk of decomittment (withdrawal of funds in line with the
rules for using ESI funds N+3 rule- funds allocated in year N must be spent in the
MEP Ivana Maletić drew up a resolution under the title of following three years) already in 2017, and especially in
„Acceleration of Implementation of Cohesion Policy“ with 2018.
the aim of taking measures for avoiding loss of EU funds
in particular Member States, especially in Croatia. That „We are not blaming anyone with this resolution and
was the first resolution requesting from the European we do not want to seek the culprit guilty for the late
Commission to take concrete measures for providing commencement of implementation. We are also not
assistance to Member States which are lagging behind asking for more funds nor for extenuation of the N+3
39
MEP IvanaMaletić taking part in the 28th anniversary of the establishment of CDU of the Šibenik-Knin County
rule. What we are asking for is the following: accelerated the MEP requested from the European Commission to
simplification of rules and procedures, rapprochement encourage investment into analyses, scientific research
of Cohesion Policy to the needs of final beneficiaries, and innovation in the mentioned areas, and exchange
better communication in order to increase the visibility of of knowledge and experiences acquired through
Cohesion Policy among citizens and, especially, early start implementation of projects financed from European
of programming for the new perspective so as for new Structural and Investment Funds in cooperation with
operational programmes to be ready at the end of 2020 Member States. Only through implementation of
and for implementation to commence in the first year“, reforms, encouraging entrepreneurship and investments,
pointed out MEP Ivana Maletić. making smart investments into educational, healthcare,
environmental, energy and transport infrastructure can
More funds for entrepreneurs and R&D&I competitiveness be raised and economic growth and
development realized.
On behalf of EPP, Mep Ivana Maletić was shadow rapporteur
for the draft opinion on the budget of the European Harmonized rules and joint work of Member
Union for 2015, and all amendments she proposed were States are required for achieving faster growth
adopted. In explaining the amendments supported by
most political parties in the Parliament, the MEP pointed As shadow rapporteur for the opinion on the European
out that in partnership agreements with Member States Semester with regard to harmonization of economic policy:
and operational programmes the European Commission Annual Growth Survey 2017, I especially pointed out that
should insist on implementation of development projects the Annual Growth Survey, as an important document on
and drivers of growth, such as opening financing sources policies which represents the basis for national reform
for SMEs and thereby direct budgetary funds towards programmes, Country Specific Recommendations and
creation of an innovative, creative and competitive implementation plans, should serve as a guideline for
Europe. Due to the importance of implementation of Member States and for preparation of national budgets
structural reforms and good management of public for the purpose of introducing common solutions which
finance for achieving economic growth and development, exist in national budgets and are linked to the EU budget.
40
I stressed that, in comparison with other large markets EIB must change its work patterns and
such as the USA, the European Union has strong fiscal rules, direct funds towards less developed
uneven legislation in Member States and a large number
Member States
of different limitations which represent an obstacle to
progress, innovative solutions and entrepreneurship in
MEP Ivana Maletić was the REGI Committee rapporteur for
general. Prior to presenting the Annual Growth Survey, it
an opinion on the Annual Report on the Financial Activities
is necessary to discuss common activities and rules which
of the European Investment Bank (EIB). This was the first
need to be established on EU level in order to encourage
time that the REGI Committee gave its opinion on EIB’s
exchange of knowledge, experiences, technologies,
report, and MEP Ivana Maletić was entrusted with drawing
innovations, development and fast growth of startups with
up the opinion first and thereby laying the foundations for
Member States in more detail.
future reports. EIB plays a series of important roles in the
implementation of Cohesion Policy: providing favourable
An important new division of Croatia loans for financing national projects, providing advisory
on the level of statistical regions and analytical services as assistance to Member States
through JEREMIE and JESSICA insturments; providing
MEP Ivana Maletić was shadow rapporteur for the report
assistance in the management of financial instruments;
on amendments to the European Statistical System for
assistance to Member States in the preparation of projects
Territorial Typologies, that is, amendments to Regulation
and building capacities with support from JASPERS
(EC) No 1059/2003 of the European Parliament and of the
and JASMINE initiatives. EIB should support sustained
Council of 26 May 2003 on the establishment of a common
development of All Member States with its activities, as
classification of territorial units for statistics , the so-called
well as direct sources of financing towards regions which
NUTS Regulation. With amendments to the former NUTS
are lagging behind, however, in her analysis of EIB’s report
Regulation proposed by the European Commission, a legal
MEP Ivana Maletić established that EIB was not fulfilling
basis for recognition of territorial typologies, including
the objective set before it by the Treaty on European Union
the definition of cities for the needs of European statistics,
and the Common Provisions Regulation for the European
has been established. That includes establishment of
Structural and Investment Funds.
definitions and statistical criteria for different territorial
typologies, with ensuring harmonized and transparent
MEP Ivana Maletić immediatelly requested detailed
applications on EU level and in Member States.
information on EIB’s operation in the context of Cohesion
Policy, explanation and measures for changing the
On NUTS II level Croatia is divided into two statistical
distribution of funds: „ According to the geographical
regions. The division into two regions, Northern and
distribution of loans as per Member States in which
Southern Croatia, as well as merging of North-Western
projects are implemented, 54,11 % of all loans approved
and Pannonian Croatia into one region, as decided by the
in 2016 were allocated to five Member States – Spain, Italy,
Government in the summer of 2012, without carrying
France, Germany and Great Britain. This distribution of
out public consultations, is not in the spirit of even
funds is not in line with the regulations and objectives EIB
regional development, that is, Cohesion Policy, because
should be fulfilling, and I request detailed information on
less developed areas are put in the position to help more
investments, the reasons for lack of investment into less
developed ones by allowing them to participate in the
developed Member States and taking urgent measures
funds. Thereby the City of Zagreb, whose GDP is above
for changes in the mode of operation and distribution of
100 % of the average GDP of Member States, has the
funds from EIB.“
opportunity of using EU funds for basic infrastructure
because it is included in Northern Croatia, whose GDP
is lower than 75 % of the EU GDP because of Slavonian Reform of the own resources system should not
counties, whose GDP is below 50 % of EU GDP. Division put an additional tax burden on EU citizens
of Croatia on the NUTS II level must be modified, and
with these amendments regulations are becoming more MEP Ivana Maletić was ECON Committee’s shadow
flexible and we have the opportunity to establish another rapporteur for an opinion on the reform of the EU’s own
division, which would support a more even development resources system, in which she especially emphasized that
of Croatia in the course of the following year. the system reform should not put an additional tax burden
on EU citizens.
For the current seven-year budgetary cycle, the EU has

at its disposal the following own resources: traditional
own resources (mostly customs and sugar duties),
41
own resources based on Value Added Tax (VAT) and contributing to better management and monitoring of
own resources based on Gross National Income (GNI). Cohesion Policy in Member States, which would allow
According to the rules, the EU can increase its own for more accurate estimations of payments from the EU
resources for payments up to the limit of 1,23 % of the budget.
total Gross National Income of all Member States during
the period 2014-2020. The total amount of approved EU funds should be directed towards areas in which the
funds for assumed commitments cannot exceed 1,29 % of largest EU added value can be realized, and therefore the
the EU’s GNI. system of allocation of funds from European Structural
and Investment Funds should be improved by adding
Within the framework of proposed measures for changing criteria related to the challenges the EU is facing,
the own resources system, the MEP pointed out that especially demographic movements, unemployment,
increase of payments based on GNI, and especially social inequality and migration.
the effects of Brexit and the need for financing new
priorities, with keeping Cohesion Policy and Common Will and decisiveness are more important
Agricultural Policy on the existing level, should be taken for implementation of structural reforms
into account. The MEP agreed with the High Level Group
on Own Resources’ proposal to simplify rules relating to than funds
VAT, reduce administrative expenses and eliminate all
correction mechanisms on the revenue side, whereby The Regulation establishing the Structural Reform Support
a more just system for European citizens would be programme was brought in May 2017. The program will
established with regard to the EU budget. last from 2017 to 2020, and 142,8 million euros have
been ensured for its implementation. Considering that
In her amendments, MEP Ivana Maletić pointed out demands of Member States for using assistance from this
the need for establishment of a budgetary capacity for programme exceed the available funds several times, it
strengthening the euro, which would not overlap with has been decided that the Programme budget be increased
existing policies and fragment the budget, and would be by 80 million euros, and the procedure of amendment of
directed at macroeconomic stabilization ans strengthening
the Regulation is in progress, while MEP Ivana Maletić
the financial system in the entire EU. „Therefore, that
budgetary capacity should be intended for all Member is shadow rapporteur. In addition to investments and
States, not only eurozone countries“, pointed out MEP responsible fiscal policy, implementation of structural
Ivana Maletić. reforms is of key importance for achieving high growth
sustainable in the long-term. „Cohesion Policy ensures
In order to realize common EU objectives with regard funds for investments, however, if countries are not
to economic governance, MEP Ivana Maletić mentioned implementing structural reforms at the same time, those
that a clear connection between budgetary spending and funds are thrown away in the long-term because they are
strategic objectives is required in the process of budget
not helping countries to develop but only postponing, that
planning.
is, mitigating their fall. That is precisely why it is important
to link the Structural Reform Support Programme with
In addition to the size of GDP, demographic Cohesion Policy“ pointed out MEP Ivana Maletić.
indicators should also be taken into account in
the distribution of ESI funds What will be the source of funds for the Structural Reform
Support Programme is also very important. We do not
MEP Ivana Maletić was BUDG Committee’s shadow wish that Cohesion Policy always be used as the source for
rapporteur for the opinion on the European Commission’s new instruments, and Member States are already financing
7th Report on Economic, Social and Territorial Cohesion
reforms from technical assistance at this moment. One of
in the EU. Within the framework of her amendments, the
MEP pointed out that each year the difference between the proposals is that they be allowed to use the Excellence
estimated and real payments for Cohesion Policy from Reserve for implementation of structural reforms, although
the EU budget is considerable and called on the European it was primarily intended for additional project financing.
Commission to develop a methodology for better planning The Commission intends to finance these additional 80
of EU budget implementation in cooperation with million euros from the Flexibility Instrument, whose funds
Member States. The MEP proposed the establishment of amount to 471 million euros annually and which serves
an e-Cohesion system into which Member States would precisely for financing expenditures for which there are
enter data on prepared projects, public procurement plans no funds within set limits in the budget, which MEP Ivana
with planned and realized dates for carrying out tender Maletić supports.
procedures and contracting, data on implementation,
as well as all financial and accounting data on accounts,
co-financing, expenditure eligibility etc., with the aim of
42
Member of the European Parliament Ivana Maletić is to the European Union as Deputy Chief Negotiator and
an economic expert with multiannual experience in the as Chief Negotiator for Chapter 22: Regional Policy and
areas of public finance, budgeting and European funds. Coordination of Structural Instruments (EU funds).
She completed an MA in Economics at the Faculty of
Economics in Zagreb. She was selected as a Croatian Democratic Union
representative at the Elections to the European Parliament
She started working at the Ministry of Finance, first in 2013 and 2014. At the European Parliament she is a
as expert assistant and advisor, and later as Assistant member of the Committee on Economic and Monetary
Minister and State Secretary. She is an internationally Affairs (ECON) and its Financial Assistance Working
renowned lecturer and advisor in the area of financial Group (FAWG), deputy member of the Committee on
management and has held numerous seminars on the Regional Development (REGI), Special Committee on Tax
subjects of financial management, budgetary processes, Rulings (TAXE) and Committee on Budgets (BUDG), and
public finance reform, EU funds, regional development she especially monitors the Committee on Budgetary
etc. Control (CONT), Committee on Employment and Social
Affairs (EMPL), Committee on Agriculture and Rural
She has published a large number of scientific and Development (AGRI), Committee on Fisheries (PECH) and
professional papers, co-authored several important books Committee on Transport and Tourism (TRAN).
from the area of public finance and currently participates
in numerous research projects. She actively participated
in the negotiations on accession of the Republic of Croatia www.ivana-maletic.com
KNOWING THE PAST. LIVING THE PRESENT. CONSIDERING THE FUTURE.
44

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April / 2018.

FOR STRATEGIC Ivana Maletić

The European Investment Bank, in addition to managing

In addition to establishing EFSI, the European Commission

Introductory word Commission have three main objectives: to strengthen

Lack of awareness represents the greatest challenge

Based on this recommendation the material facing you

Infrastructure and innovation projects SMEs

Source: drawn up by the author

Member State Spain

Member State Poland

Member State Portugal

Member State Latvia

Member State Belgium

Member State Italy

Member State France

Member State Slovenia

Member State Italy

Member State Great Britain

Member State Ireland

Member State Germany

Member State Romania

Table 2: EFSI funding per Member States (in billion euros)

Of the total amount of EFSI funds amounting to 49,579

According to HBOR’s financial report for 2016, at the start

Project title DUBROVNIK AIRPORT RECONSTRUCTION AND DEVELOPMENT

Project title EL TO ZAGREB

Project title About the project

Project title About the project

Amount of assigned / allocated

Area Technical assistance examples

Project title About the project

Project title About the project

Project title About the project

Project title About the project

Project title About the project

With numerous amendments and this resolution I

We prepared workshops with the aim of introducing

After 2020 we will receive almost the same envelope,

The book “Ready-Set-Go-Erasmus+” MEP Ivana Maletić assuming presidency over

Due to my continued work with young people and

Knowledge for Innovation (K4I)

After K4I had been run by former President of the

K4I is an open and independent platform whose aim is

MEP Ivana Maletić organized a conference under the

The approved projects within the framework of the

Information on important EU subjects

All publications, as well as presentations held at

Visitor programmes and internships

Thereby, over 60 young people worked as interns at our

In addition to a visit, a conference is also almost always

For the current seven-year budgetary cycle, the EU has

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