The European Commission has approved under EU state aid rules Croatia’s map for granting regional aid from 1 January 2022 to 31 December 2027 within the framework of the revised Regional aid Guidelines (‘RAG’). The revised RAG, adopted by the Commission on 19 April 2021 and entering into force on 1 January 2022, enable member states to support the least favoured European regions in catching up and to reduce disparities in terms of economic well-being, income and unemployment – cohesion objectives that are at the heart of the Union. They also provide increased possibilities for member states to support regions facing transition or structural challenges such as depopulation, to contribute fully to the green and digital transitions.
At the same time, the revised RAG maintain strong safeguards to prevent member states from using public money to trigger the relocation of jobs from one EU member state to another, which is essential for fair competition in the Single Market. Croatia’s regional map defines the Croatian regions eligible for regional investment aid. The map also establishes the maximum aid intensities in the eligible regions. The aid intensity is the maximum amount of State aid that can be granted per beneficiary, expressed as a percentage of eligible investment costs. Under the revised RAG, regions covering the entire population of Croatia will be eligible for regional investment aid. A press release is available online.