EU approves €1 billion in incentives to support Croatian economy

The European Commission has approved two Croatian schemes to support the Croatian economy in the context of the coronavirus outbreak.

Croatia notified to the Commission under the Temporary Aid Framework of its intention to adapt two schemes, with an overall estimated budget of €1 billion, to support companies affected by the coronavirus outbreak.

Under the two schemes, the public support will take the form of zero-interest loans and loans with subsidised interest rates, respectively.

The schemes aim at enhancing access to liquidity by those companies which are most severely affected by the economic impact of the coronavirus outbreak, thus ensuring the continuation of their activities.

The Commission therefore concluded that the Croatian measures are necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework.