Implementing decision 2022/2079 - Amendment of Implementing Decision (EU) 2020/1348 granting temporary support to Croatia to mitigate unemployment risks following the COVID-19 outbreak - Main contents

EN

Official Journal of the European Union

L 280/15

Further to a request from Croatia on 6 August 2020, the Council, by means of Implementing Decision (EU) 2020/1348 (2), granted financial assistance to Croatia in the form of a loan amounting to a maximum of EUR 1 020 600 000 with a maximum average maturity of 15 years, and with an availability period of 18 months, with a view to complementing Croatia’s national efforts to address the impact of the COVID-19 outbreak and respond to the socioeconomic consequences of that outbreak for workers and the self-employed.

The loan was to be used by Croatia to finance short-time work schemes and similar measures, as referred to in Article 3 of Implementing Decision (EU) 2020/1348.

The COVID-19 outbreak has immobilised a substantial part of the labour force in Croatia. This has led to repeated sudden and severe increases in public expenditure in Croatia in respect of the measures referred to in Article 3, points (a) and (b), of Implementing Decision (EU) 2020/1348.

The COVID-19 outbreak and the extraordinary measures implemented by Croatia in 2020, 2021 and 2022 to contain that outbreak and its socioeconomic and health-related impact have had a dramatic impact on public finances. In 2020, Croatia had a general government deficit and debt of 7,3 % and 87,3 % of gross domestic product (GDP) respectively, which narrowed to 2,9 % and 79,8 % respectively at the end of 2021. According to the Commission’s 2022 spring forecast, Croatia is expected to have a general government deficit and debt of 1,8 % and 73,1 % of GDP respectively by the end of 2022. According to the Commission’s 2022 summer interim forecast, Croatia’s GDP is projected to increase by 3,4 % in 2022.

On 25 July 2022 Croatia requested further financial assistance from the Union in the amount of EUR 550 000 000 with a view to continuing to complement its national efforts undertaken in 2020, 2021 and 2022 to address the impact of the COVID-19 outbreak and respond to the socioeconomic consequences of the outbreak for workers. In particular, Croatia further extended and amended the short-time work schemes and similar measures set out in recitals (6) to (7).

On the basis of the ‘Labour Market Act’ (3), Croatia introduced a measure that provides co-financing of workers’ salaries to businesses that experience a drop in revenue compared with 2019. The drop in revenue criteria are: a drop of 20 % in the period from March to May 2020, of 50 % in the period from June to December 2020, and starting from January 2021 the only requirement is a decrease in revenues compared to the corresponding month in 2019, on condition that the employment relationship is not terminated. For March 2020, the amount of support was set at HRK 3 250 per full-time employee, and starting from the month of April 2020 the monthly amount of support has been set at HRK 4 000 per full-time employee. The amount of support per employee remains unchanged over the period the measure remains active, but sectors that are eligible for support change over time...